10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10–Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-35512

Amplify Energy Corp.

(Exact name of registrant as specified in its charter)

Delaware	82-1326219
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
500 Dallas Street, Suite 1700, Houston, TX	77002
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (713) 490-8900

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ☐  

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐	Accelerated filer  ☑
Non-accelerated filer  ☐	Smaller reporting company  ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b–2 of the Exchange Act).    Yes  ☐    No  ☑

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☑  Yes      ☐No

Securities Registered Pursuant to Section 12(b):

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	AMPY	NYSE

As of May 1, 2020, the registrant had 37,566,430 outstanding shares of common stock, $0.01 par value outstanding.

AMPLIFY ENERGY CORP.

Table of Contents

		Page
	Glossary of Oil and Natural Gas Terms	1
	Names of Entities	4
	Cautionary Note Regarding Forward-Looking Statements	5
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019	8
	Unaudited Condensed Statements of Consolidated Operations for the Three Months Ended March 31, 2020 and 2019	9
	Unaudited Condensed Statements of Consolidated Cash Flows for the Three Months Ended March 31, 2020 and 2019	10
	Unaudited Condensed Statements of Consolidated Equity for the Three Months Ended March 31, 2020 and 2019	11
	Notes to Unaudited Condensed Consolidated Financial Statements	12
	Note 1 – Organization and Basis of Presentation	12
	Note 2 – Summary of Significant Accounting Policies	13
	Note 3 – Revenue	14
	Note 4 – Acquisitions and Divestitures	15
	Note 5 – Fair Value Measurements of Financial Instruments	15
	Note 6 – Risk Management and Derivative Instruments	15
	Note 7 – Asset Retirement Obligations	19
	Note 8 – Long-term Debt	20
	Note 9 – Equity (Deficit)	20
	Note 10 – Earnings per Share	21
	Note 11 – Long-Term Incentive Plans	22
	Note 12 – Leases	24
	Note 13 -Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Statements of Consolidated Cash Flows	25
	Note 14 – Related Party Transactions	26
	Note 15 – Commitments and Contingencies	26
	Note 16 – Income Taxes	26
	Note 17 – Subsequent Events	27
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	39
Signatures		41

i

GLOSSARY OF OIL AND NATURAL GAS TERMS

Analogous Reservoir: Analogous reservoirs, as used in resource assessments, have similar rock and fluid properties, reservoir conditions (depth, temperature and pressure) and drive mechanisms, but are typically at a more advanced stage of development than the reservoir of interest and thus may provide concepts to assist in the interpretation of more limited data and estimation of recovery. When used to support proved reserves, analogous reservoir refers to a reservoir that shares all of the following characteristics with the reservoir of interest: (i) the same geological formation (but not necessarily in pressure communication with the reservoir of interest); (ii) the same environment of deposition; (iii) similar geologic structure; and (iv) the same drive mechanism.

Bbl: One stock tank barrel, or 42 U.S. gallons liquid volume, used in reference to oil or other liquid hydrocarbons.

Bbl/d: One Bbl per day.

Bcfe: One billion cubic feet of natural gas equivalent.

Boe: One barrel of oil equivalent, calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Bbl of oil.

BOEM: Bureau of Ocean Energy Management.

Btu: One British thermal unit, the quantity of heat required to raise the temperature of a one-pound mass of water by one degree Fahrenheit.

Development Project: A development project is the means by which petroleum resources are brought to the status of economically producible. As examples, the development of a single reservoir or field, an incremental development in a producing field or the integrated development of a group of several fields and associated facilities with a common ownership may constitute a development project.

Dry Hole or Dry Well: A well found to be incapable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of such production would exceed production expenses and taxes.

Economically Producible: The term economically producible, as it relates to a resource, means a resource which generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation. For this determination, the value of the products that generate revenue are determined at the terminal point of oil and natural gas producing activities.

Exploitation: A development or other project which may target proven or unproven reserves (such as probable or possible reserves), but which generally has a lower risk than that associated with exploration projects.

Field: An area consisting of a single reservoir or multiple reservoirs, all grouped on or related to the same individual geological structural feature and/or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations.

Gross Acres or Gross Wells: The total acres or wells, as the case may be, in which we have a working interest.

ICE: Inter-Continental Exchange.

MBbl: One thousand Bbls.  

MBbls/d: One thousand Bbls per day.

MBoe: One thousand barrels of oil equivalent.

MBoe/d: One thousand barrels of oil equivalent per day.

MMBoe: One million barrels of oil equivalent.

Mcf: One thousand cubic feet of natural gas.

Mcf/d: One Mcf per day.

MMBtu: One million Btu.

MMcf: One million cubic feet of natural gas.

MMcfe: One million cubic feet of natural gas equivalent.

MMcfe/d: One MMcfe per day.

Net Production: Production that is owned by us less royalties and production due to others.

NGLs: The combination of ethane, propane, butane and natural gasolines that, when removed from natural gas, become liquid under various levels of higher pressure and lower temperature.

1

NYMEX: New York Mercantile Exchange.

Oil: Oil and condensate.

Operator: The individual or company responsible for the exploration and/or production of an oil or natural gas well or lease.

OPIS: Oil Price Information Service.

Plugging and abandonment: Refers to the sealing off of fluids in the strata penetrated by a well so that the fluids from one stratum will not escape into another stratum or to the surface. Regulations of all states require plugging of abandoned wells.

Probabilistic Estimate: The method of estimation of reserves or resources is called probabilistic when the full range of values that could reasonably occur for each unknown parameter (from the geoscience and engineering data) is used to generate a full range of possible outcomes and their associated probabilities of occurrence.

Proved Developed Reserves: Proved reserves that can be expected to be recovered from existing wells with existing equipment and operating methods.

Proved Reserves: Those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible, from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations, prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project, within a reasonable time. The area of the reservoir considered as proved includes (i) the area identified by drilling and limited by fluid contacts, if any, and (ii) adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or natural gas on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons, as seen in a well penetration, unless geoscience, engineering or performance data and reliable technology establishes a lower contact with reasonable certainty. Where direct observation from well penetrations has defined a highest known oil elevation and the potential exists for an associated natural gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty. Reserves which can be produced economically through application of improved recovery techniques (including fluid injection) are included in the proved classification when (i) successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir, or an analogous reservoir or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and (ii) the project has been approved for development by all necessary parties and entities, including governmental entities. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price used is the average price during the twelve-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.

Realized Price: The cash market price less all expected quality, transportation and demand adjustments.

Reliable Technology: Reliable technology is a grouping of one or more technologies (including computational methods) that has been field tested and has been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation.

Reserves: Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to market and all permits and financing required to implement the project. Reserves should not be assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations).

Reservoir: A porous and permeable underground formation containing a natural accumulation of producible oil and/or natural gas that is confined by impermeable rock or water barriers and is individual and separate from other reserves.

Resources: Resources are quantities of oil and natural gas estimated to exist in naturally occurring accumulations. A portion of the resources may be estimated to be recoverable and another portion may be considered unrecoverable. Resources include both discovered and undiscovered accumulations.

Working Interest: An interest in an oil and natural gas lease that gives the owner of the interest the right to drill for and produce oil and natural gas on the leased acreage and requires the owner to pay a share of the costs of drilling and production operations.

2

Workover: Operations on a producing well to restore or increase production.

WTI: West Texas Intermediate.

3

NAMES OF ENTITIES

As used in this Form 10-Q, unless we indicate otherwise:

• “Amplify Energy,” “Company,” “we,” “our,” “us” or like terms refers to Amplify Energy Corp. (f/k/a Midstates Petroleum Company, Inc.) individually and collectively with its subsidiaries, as the context requires;

• “Legacy Amplify” refers to Amplify Energy Holdings LLC (f/k/a Amplify Energy Corp.), the successor reporting company of Memorial Production Partners LP;

• “Midstates” refers to Midstates Petroleum Company, Inc., which, on the effective date of the Merger (as defined below), changed its name to “Amplify Energy Corp.”; and

• “OLLC” refers to Amplify Energy Operating LLC, our wholly owned subsidiary through which we operate our properties.

4

CAUTIONARY NOTE REGARDING FORWARD–LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, that are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about our:

• business strategies;

• acquisition and disposition strategy;

• cash flows and liquidity;

• financial strategy;

• ability to replace the reserves we produce through drilling;

• drilling locations;

• oil and natural gas reserves;

• technology;

• realized oil, natural gas and NGL prices;

• production volumes;

• lease operating expense;

• gathering, processing, and transportation;

• general and administrative expense;

• future operating results;

• ability to procure drilling and production equipment;

• ability to procure oil field labor;

• planned capital expenditures and the availability of capital resources to fund capital expenditures;

• ability to access capital markets;

• marketing of oil, natural gas and NGLs;

• risks relating to transportation and storage capacity constraints;

• risks relating to production curtailment;

• a sustained decrease or further decline in the demand for oil and natural gas;

• acts of God, fires, earthquakes, storms, floods, other adverse weather conditions, war, acts of terrorism, military operations, or national emergency;

• the occurrence or threat of epidemic or pandemic diseases, such as the recent outbreak of a novel strain of coronavirus (“COVID-19”), or any government response to such occurrence or threat;

• expectations regarding general economic conditions;

• competition in the oil and natural gas industry;

• effectiveness of risk management activities;

• environmental liabilities;

• counterparty credit risk;

• expectations regarding governmental regulation and taxation;

• expectations regarding developments in oil-producing and natural-gas producing countries; and

• plans, objectives, expectations and intentions.

5

All statements, other than statements of historical fact included in this report, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties. Important factors that could cause our actual results or financial condition to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following risks and uncertainties:

• our results of evaluation and implementation of strategic alternatives;

• risks related to a redetermination of the borrowing base under our senior secured reserve-based revolving credit facility;

• our ability to access funds on acceptable terms, if at all, because of the terms and conditions governing our indebtedness, including financial covenants;

• our ability to satisfy debt obligations;

• volatility in the prices for oil, natural gas, and NGLs, including further or sustained declines in commodity prices;

• the potential for additional impairments due to continuing or future declines in oil, natural gas and NGL prices;

• the uncertainty inherent in estimating quantities of oil, natural gas and NGLs reserves;

• our substantial future capital requirements, which may be subject to limited availability of financing;

• the uncertainty inherent in the development and production of oil and natural gas;

• our need to make accretive acquisitions or substantial capital expenditures to maintain our declining asset base;

• the existence of unanticipated liabilities or problems relating to acquired or divested businesses or properties;

• potential acquisitions, including our ability to make acquisitions on favorable terms or to integrate acquired properties;

• the consequences of changes we have made, or may make from time to time in the future, to our capital expenditure budget, including the impact of those changes on our production levels, reserves, results of operations and liquidity;

• potential shortages of, or increased costs for, drilling and production equipment and supply materials for production, such as CO₂;

• potential difficulties in the marketing of oil and natural gas;

• changes to the financial condition of counterparties;

• uncertainties surrounding the success of our secondary and tertiary recovery efforts;

• competition in the oil and natural gas industry;

• general political and economic conditions, globally and in the jurisdictions in which we operate;

• the impact of legislation and governmental regulations, including those related to climate change and hydraulic fracturing;

• the risk that our hedging strategy may be ineffective or may reduce our income;

• the cost and availability of insurance as well as operating risks that may not be covered by an effective indemnity or insurance; and

• actions of third-party co-owners of interests in properties in which we also own an interest.

6

The forward-looking statements contained in this report are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management’s assumptions about future events may prove to be inaccurate. All readers are cautioned that the forward-looking statements contained in this report are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or that the events or circumstances described in any forward-looking statement will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors described in “Part I—Item 1A. Risk Factors” of Amplify’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission(the “SEC”) on March 5, 2020 (“Amplify Form 10-K”). All forward-looking statements speak only as of the date of this report. We do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

7

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

AMPLIFY ENERGY CORP.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except outstanding shares)

	March 31,			December 31,
	2020			2019
ASSETS
Current assets:
Cash and cash equivalents	$	1,894		$	—
Restricted cash		—			325
Accounts receivable, net		24,654			33,145
Short-term derivative instruments		78,407			5,879
Prepaid expenses and other current assets		11,426			13,238
Total current assets		116,381			52,587
Property and equipment, at cost:
Oil and natural gas properties, successful efforts method		762,149			797,005
Support equipment and facilities		141,178			140,023
Other		8,349			8,045
Accumulated depreciation, depletion and impairment		(562,614	)		(141,350	)
Property and equipment, net		349,062			803,723
Long-term derivative instruments		27,455			6,364
Restricted investments		4,622			4,622
Operating lease - long term right-of-use asset		4,076			4,406
Other long-term assets		5,529			5,837
Total assets	$	507,125		$	877,539
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	3,947		$	8,310
Revenues payable		27,121			29,167
Accrued liabilities (see Note 13)		23,900			23,358
Short-term derivative instruments		690			253
Total current liabilities		55,658			61,088
Long-term debt (see Note 8)		290,000			285,000
Asset retirement obligations		91,979			90,466
Long-term derivative instruments		1,913			305
Operating lease liability		1,901			2,720
Other long-term liabilities		3,578			3,753
Total liabilities		445,029			443,332
Commitments and contingencies (see Note 15)
Stockholders' equity:
Preferred stock, $0.01 par value: 50,000,000 shares authorized; no shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively		—			—
Warrants, 9,153,522 warrants issued and outstanding at March 31, 2020 and December 31, 2019, respectively		4,790			4,790
Common stock, $0.01 par value: 250,000,000 shares authorized; 37,568,164 and 37,566,540 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively		209			209
Additional paid-in capital		423,273			424,399
Accumulated earnings		(366,176	)		4,809
Total stockholders' equity		62,096			434,207
Total liabilities and equity	$	507,125		$	877,539

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

8

AMPLIFY ENERGY CORP.

UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS

(In thousands, except per share amounts)

	For the Three Months Ended
	March 31,
	2020			2019
Revenues:
Oil and natural gas sales	$	57,787		$	65,067
Other revenues		349			88
Total revenues		58,136			65,155
Costs and expenses:
Lease operating expense		35,723			28,910
Gathering, processing and transportation		5,053			4,657
Exploration		16			15
Taxes other than income		3,986			4,409
Depreciation, depletion and amortization		15,556			11,166
Impairment expense		455,031			—
General and administrative expense		8,353			9,308
Accretion of asset retirement obligations		1,513			1,311
(Gain) loss on commodity derivative instruments		(107,713	)		32,487
Other, net		—			143
Total costs and expenses		417,518			92,406
Operating loss		(359,382	)		(27,251	)
Other income (expense):
Interest expense, net		(7,647	)		(4,089	)
Other income (expense)		16			—
Total other income (expense)		(7,631	)		(4,089	)
Loss before reorganization items, net and income taxes		(367,013	)		(31,340	)
Reorganization items, net		(186	)		(187	)
Income tax benefit (expense)		—			50
Net loss		(367,199	)		(31,477	)
Net (income) loss allocated to participating restricted stockholders		—			—
Net loss attributable to common stockholders	$	(367,199	)	$	(31,477	)
Earnings per share: (See Note 10)
Basic and diluted earnings per share	$	(9.77	)	$	(1.42	)
Weighted average common shares outstanding:
Basic and diluted		37,568			22,179

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

9

AMPLIFY ENERGY CORP.

UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

(In thousands)

	For the Three Months Ended
	March 31,
	2020			2019
Cash flows from operating activities:
Net loss	$	(367,199	)	$	(31,477	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		15,556			11,166
Impairment expense		455,031			—
(Gain) loss on derivative instruments		(104,096	)		32,393
Cash settlements (paid) received on expired derivative instruments		12,522			(1,277	)
Bad debt expense		110			101
Amortization and write-off of deferred financing costs		309			308
Accretion of asset retirement obligations		1,513			1,311
Share-based compensation (see Note 11)		(1,112	)		1,443
Settlement of asset retirement obligations		—			(162	)
Changes in operating assets and liabilities:
Accounts receivable		8,381			4,326
Prepaid expenses and other assets		(349	)		(6,856	)
Payables and accrued liabilities		(7,399	)		(537	)
Other		(178	)		61
Net cash provided by operating activities		13,089			10,800
Cash flows from investing activities:
Additions to oil and gas properties		(12,416	)		(10,370	)
Additions to other property and equipment		(304	)		(62	)
Additions to restricted investments		—			(68	)
Net cash used in investing activities		(12,720	)		(10,500	)
Cash flows from financing activities:
Advances on revolving credit facilities		25,000			—
Payments on revolving credit facilities		(20,000	)		(24,000	)
Deferred financing costs		—			(101	)
Dividends to stockholders		(3,786	)		—
Common stock repurchased and retired under the share repurchase program		—			(920	)
Costs incurred in conjunction with tender offer		—			(107	)
Restricted units returned to plan		(14	)		—
Net cash provided by (used in) financing activities		1,200			(25,128	)
Net change in cash, cash equivalents and restricted cash		1,569			(24,828	)
Cash, cash equivalents and restricted cash, beginning of period		325			50,029
Cash, cash equivalents and restricted cash, end of period	$	1,894		$	25,201

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

10

AMPLIFY ENERGY CORP.

UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY

(In thousands)

	Stockholders' Equity
	Common Stock		Warrants		Additional Paid-in Capital			Accumulated Earnings (Deficit)			Total
Balance at December 31, 2019	$	209	$	4,790	$	424,399		$	4,809		$	434,207
Net loss		—		—		—			(367,199	)		(367,199	)
Share-based compensation expense		—		—		(1,112	)		—			(1,112	)
Restricted shares repurchased		—		—		(14	)		—			(14	)
Dividends		—		—		—			(3,786	)		(3,786	)
Balance at March 31, 2020	$	209	$	4,790	$	423,273		$	(366,176	)	$	62,096

	Stockholders' Equity
	Common Stock		Warrants		Additional Paid-in Capital			Accumulated Earnings (Deficit)			Total
Balance at December 31, 2018	$	3	$	4,788	$	355,872		$	55,895		$	416,558
Net loss		—		—		—			(31,477	)		(31,477	)
Costs incurred in conjunction with tender offer		—		—		(107	)		—			(107	)
Share-based compensation expense		—		—		1,443			—			1,443
Common stock repurchased and retired under the share repurchase program		—		—		(920	)		—			(920	)
Balance at March 31, 2019	$	3	$	4,788	$	356,288		$	24,418		$	385,497

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

11

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Basis of Presentation

General

On August 6, 2019, Midstates Petroleum Company, Inc., a Delaware corporation (“Midstates”), completed its business combination (the “Merger”) with Amplify Energy Corp. (“Legacy Amplify”) in accordance with the terms of that certain Agreement and Plan of Merger, dated May 5, 2019 (the “Merger Agreement”), by and among Midstates, Legacy Amplify and Midstates Holdings, Inc., a Delaware corporation and direct, wholly owned subsidiary of Midstates (“Merger Sub”). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Legacy Amplify, with Legacy Amplify surviving the Merger as a wholly owned subsidiary of Midstates, and immediately following the Merger, Legacy Amplify merged with and into Alpha Mike Holdings LLC, a Delaware limited liability company and wholly owned subsidiary of Midstates (“LLC Sub”), with LLC Sub surviving as a wholly owned subsidiary of Midstates. On the effective date of the Merger, Midstates changed its name to “Amplify Energy Corp.” (the “Company”) and LLC Sub changed its name to “Amplify Energy Holdings LLC.”

For financial reporting purposes, the Merger represented a “reverse merger” and Legacy Amplify was deemed to be the accounting acquirer in the transaction. Legacy Amplify’s historical results of operations will replace Midstates’ historical results of operations for all periods prior to the Merger and, for all periods following the Merger, the Company’s financial statements will reflect the results of operations of the combined company. Accordingly, the financial statements for the Company included in this Quarterly Report on Form 10-Q for periods prior to the Merger are not the same as Midstates prior reported filings with the SEC, which were derived from the operations of Midstates. As a result, period-to-period comparisons of our operating results may not be meaningful. The results of any one quarter should not be relied upon as an indication of future performance.

When referring to Legacy Amplify, the intent is to refer to Amplify Energy Corp. prior to the effective date of the Merger, and its consolidated subsidiaries as a whole or on an individual basis, depending on the context in which the statements are made.

We operate in one reportable segment engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Our management evaluates performance based on one reportable business segment as the economic environments are not different within the operation of our oil and natural gas properties. Our assets consist primarily of producing oil and natural gas properties and are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas / North Louisiana and South Texas. Most of our oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells.

Basis of Presentation

Our Unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and guidelines of the SEC. The results reported in these Unaudited Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Although we believe the disclosures in these financial statements are adequate, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC.

The Unaudited Condensed Consolidated Financial Statements have been prepared as if the Company is a going concern and reflect the application of Accounting Standards Codification 852 “Reorganizations” (“ASC 852”). ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains and losses that were realized or incurred in the bankruptcy proceedings are recorded in “reorganization items, net” on the Company’s Unaudited Condensed Statements of Consolidated Operations.

All intercompany transactions and balances have been eliminated in preparation of our consolidated financial statements.

Risk and Uncertainties

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine the extent of the impact caused by the COVID-19 pandemic to the Company’s operations.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The pandemic has lowered the demand for oil and natural gas which has led to low commodity prices. The reductions in commodity prices has resulted in lower levels of cash flow from operating activities. In addition, the borrowing base under our Revolving Credit Facility (as defined below) is subject to redetermination on at least a semi-annual basis primarily based on an engineering report with respect to our estimated oil, NGL and natural gas reserves which will take into account the prevailing oil, NGL and natural gas prices at such time, as adjusted for the impact of our commodity derivative contracts. Continued low commodity prices will likely adversely impact our redeterminations. The reduction in commodity prices has directly led to an impairment of our oil and natural gas properties. There may be further impairments in future periods if commodity prices continue to decline.

Definitive Merger Agreement

On May 5, 2019, as discussed above, the Company entered into the Merger Agreement pursuant to which Legacy Amplify merged with a subsidiary of Midstates in an all-stock merger-of-equals. Under the terms of the Merger Agreement, Legacy Amplify stockholders received 0.933 shares of newly issued Company common stock for each share of Legacy Amplify common stock that they owned. The Merger closed on August 6, 2019.

Use of Estimates

The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion, and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations.

Note 2. Summary of Significant Accounting Policies

Other than the accounting policies implemented in connection with the adoption of the current expected credit losses, there have been no changes to the Company’s significant accounting policies and estimates as described in the Company’s annual financial statements included in our Annual Report on Form 10-K.

Lease Recognition

In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance regarding the accounting for leases. The FASB retained a dual model, requiring leases to be classified as either direct financing or operating leases. The classification will be based on criteria that are similar to the current lease accounting treatment. The Company is the lessee under various agreements for office space, compressors, equipment, vehicles and surface rentals (right of use assets) that are currently accounted for as operating leases.

The Company applied the revised lease rules for our interim and annual reporting periods starting January 1, 2019 using the modified retrospective approach with a cumulative impact to retained earnings in that period, and including several optional practical expedients relating to leases commenced before the effective date. The practical expedients the Company adopted are: (1) the original correct assessment of a contract containing a lease will be accepted without further review on all existing or expired contracts; (2) the original lease classification as an operating lease will convert as an operating lease under the new guidance; (3) initial direct costs for any existing leases will not be reassessed; (4) existing land easements or right of use agreements will continue under current accounting policy and only new agreements will be evaluated in the future; and (5) short-term leases for twelve months or less will not be evaluated under the guidance.

See Note 12 for additional information regarding the adoption of the leases standard.

Current Expected Credit Losses

In May 2019, the FASB issued an accounting standard update to provide entities with an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon the adoption. The fair value option election does not apply to held-to-maturity debt securities. The Company adopted the guidance as of January 1, 2020. The Company has evaluated the impact of this guidance and concluded that the current and historical evaluation of estimated credit losses falls within the acceptable guidance.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The provisions of the standard were interpreted to relate only to the Company’s accounts receivable, net. Trade receivables relate to one common pool, revenue earned on the sale of oil, natural gas and natural gas liquids. The performance obligation is satisfied at a point in time and revenue is recognized and a trade receivable is recorded from the sale when production is delivered to, and title has transferred to, the purchaser. The majority of the Company’s purchasers have been large major companies in the industry with the wherewithal to pay.  

The Company, as operator on most of our wells, also records receivables on billings to our joint interest owners who participate in the operating costs of the wells they have an interest in. Historically an allowance for doubtful accounts has been set up to recognize credit losses on joint interest billing (“JIB”) receivables based upon an aging analysis which is an appropriate method to estimate credit losses under the guidance. The Company will continue to assess the expected credit loss in the future as economic conditions change. Considering the recent drop in commodity prices we believe the majority of our revenue purchasers have the size and financial condition to currently meet their obligations. There could be added risk on the JIB accounts receivable as some wells could become uneconomic, with the revenue not enough to cover operating expenses billed, which could result in additional write-offs. The Company will continue to closely monitor trade receivables. Based upon the analysis performed there was no impact to beginning retained earnings upon the adoption of the guidance.

New Accounting Pronouncements

Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued an accounting standard update which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. This accounting standards update removes the following exceptions: (i) exception to the incremental approach for intraperiod tax allocation when there is a loss continuing operations and income or a gain from other items; (ii) exception to the requirements to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (iii) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (iv) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the accounting standards update also improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. The new guidance is effective for fiscal years and interim period within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of this guidance and does not expect the guidance to have a material impact on the Company's financial statements.

Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows.

Note 3. Revenue

Revenue from contracts with customers

Oil and natural gas revenues are recorded using the sales method. Under this method, revenues are recognized based on actual volumes of oil and natural gas sold to purchasers, regardless of whether the sales are proportionate to our ownership in the property. An asset or a liability is recognized to the extent there is an imbalance in excess of the proportionate share of the remaining recoverable reserves on the underlying properties. No significant imbalances existed at March 31, 2020.

Disaggregation of Revenue

We have identified three material revenue streams in our business: oil, natural gas and NGLs. The following table present our revenues disaggregated by revenue stream.

	For the Three Months Ended
	March 31,
	2020		2019
	(in thousands)
Revenues
Oil	$	41,851	$	40,057
NGLs		5,122		5,865
Natural gas		10,814		19,145
Oil and natural gas sales	$	57,787	$	65,067

Contract Balances

Under our sales contracts, we invoice customers once our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities. Accounts receivable attributable to our revenue contracts with customers was $16.2 million at March 31, 2020 and $31.9 million at December 31, 2019.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 4. Acquisitions and Divestitures

Acquisition and Divestiture Related Expenses

There were no material acquisition or divestitures during the three months ended March 31, 2020 and 2019, respectively.

Business Combination

Acquisitions qualifying as a business combination are accounted for under the acquisition method of accounting, which requires, among other items, that assets acquired and liabilities assumed be recognized on the condensed consolidated balance sheet at their fair values as of the acquisition date. The fair value measurements of the oil and natural gas properties acquired and asset retirement obligations assumed were derived utilizing an income approach and based, in part, on significant inputs not observable in the market. These inputs represent Level 3 measurements in the fair value hierarchy and include, but are not limited to, estimates of reserves, future operating and development costs, estimated future cash flows and appropriate discount rates. These inputs required significant judgments and estimates at the time of the valuation.

Merger

On May 5, 2019, Midstates, Legacy Amplify and Merger Sub entered into the Merger Agreement pursuant to which, Merger Sub merged with and into Legacy Amplify, with Legacy Amplify surviving the Merger as a wholly owned subsidiary of Midstates. At the effective time of the Merger, each share of Legacy Amplify common stock issued and outstanding immediately prior to the effective time (other than excluded shares) were cancelled and converted into the right to receive 0.933 shares of Midstates common stock, par value $0.01 per share. On August 6, 2019, the effective date of the Merger, Midstates changed its name to “Amplify Energy Corp.”

Unaudited Pro Forma Financials

The following unaudited pro forma financial information for the three months ended March 31, 2019, is based on our historical consolidated financial statements adjusted to reflect as if the Merger had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including adjustments to conform the classification of expenses in Midstates statements of operations to our classification for similar expenses and the estimated tax impact of pro forma adjustments. The unaudited pro forma financial information is not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the periods presented, nor is it necessarily indicative of future results.

	For the Three Months Ended March 31, 2019
(Unaudited) (In thousands, except per unit amounts)
Revenues	$	94,996
Net income (loss)		(32,035	)
Earnings per share:
Basic	$	(0.73	)
Diluted	$	(0.73	)

Note 5. Fair Value Measurements of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. A three-tier hierarchy has been established that classifies fair value amounts recognized or disclosed in the financial statements. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). All the derivative instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets were considered Level 2.

The carrying values of accounts receivables, accounts payables (including accrued liabilities), restricted investments and amounts outstanding under long-term debt agreements with variable rates included in the accompanying Unaudited Condensed Consolidated Balance Sheets approximated fair value at March 31, 2020 and December 31, 2019. The fair value estimates are based upon observable market data and are classified within Level 2 of the fair value hierarchy. These assets and liabilities are not presented in the following tables.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair market values of the derivative financial instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 were based on estimated forward commodity prices. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement in its entirety. The significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

The following table presents the gross derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 for each of the fair value hierarchy levels:

	Fair Value Measurements at March 31, 2020 Using
	Quoted Prices in		Significant Other		Significant
	Active Market		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(In thousands)
Assets:
Commodity derivatives	$	—	$	111,512	$	—	$	111,512
Interest rate derivatives		—		—		—		—
Total assets	$	—	$	111,512	$	—	$	111,512
Liabilities:
Commodity derivatives	$	—	$	4,651	$	—	$	4,651
Interest rate derivatives		—		3,602		—		3,602
Total liabilities	$	—	$	8,253	$	—	$	8,253

	Fair Value Measurements at December 31, 2019 Using
	Quoted Prices in		Significant Other		Significant
	Active Market		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(In thousands)
Assets:
Commodity derivatives	$	—	$	18,509	$	—	$	18,509
Interest rate derivatives		—		595		—		595
Total assets	$	—	$	19,104	$	—	$	19,104
Liabilities:
Commodity derivatives	$	—	$	6,861	$	—	$	6,861
Interest rate derivatives		—		558		—		558
Total liabilities	$	—	$	7,419	$	—	$	7,419

See Note 6 for additional information regarding our derivative instruments.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are reported at fair value on a nonrecurring basis as reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets. The following methods and assumptions are used to estimate the fair values:

• The fair value of asset retirement obligations (“AROs”) is based on discounted cash flow projections using numerous estimates, assumptions and judgments regarding factors such as the existence of a legal obligation for an ARO; amounts and timing of settlements; the credit-adjusted risk-free rate; and inflation rates. The initial fair value estimates are based on unobservable market data and are classified within Level 3 of the fair value hierarchy. See Note 7 for a summary of changes in AROs.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

• Proved oil and natural gas properties are reviewed for impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of such properties. The Company uses an income approach based on the discounted cash flow method, whereby the present value of expected future net cash flows are discounted by applying an appropriate discount rate, for purposes of placing a fair value on the assets. The future cash flows are based on management’s estimates for the future. The unobservable inputs used to determine fair value include, but are not limited to, estimates of proved reserves, estimates of probable reserves, future commodity prices,the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and natural gas properties (some of which are Level 3 inputs within the fair value hierarchy).

• For the three months ended March 31, 2020, we recognized $405.7 million of impairment expense on our proved oil and natural gas properties. These impairments related to certain properties located in East Texas, the Rockies and offshore Southern California. The estimated future cash flows expected from these properties were compared to their carrying values and determined to be unrecoverable primarily as a result of declining commodity prices. The impairments were due to a decline in the value of estimated proved reserves based on declining commodity prices.

• No impairment expense was recognized during the three months ended March 31, 2019.

Note 6. Risk Management and Derivative Instruments

Derivative instruments are utilized to manage exposure to commodity price fluctuations and achieve a more predictable cash flow in connection with natural gas and oil sales from production and borrowing related activities. These instruments limit exposure to declines in prices, but also limit the benefits that would be realized if prices increase.

Certain inherent business risks are associated with commodity derivative contracts, including market risk and credit risk. Market risk is the risk that the price of natural gas or oil will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the counterparty to a contract. It is our policy to enter into derivative contracts, only with creditworthy counterparties, which generally are financial institutions, deemed by management as competent and competitive market makers. Some of the lenders, or certain of their affiliates, under our previous and current credit agreements are counterparties to our derivative contracts. While collateral is generally not required to be posted by counterparties, credit risk associated with derivative instruments is minimized by limiting exposure to any single counterparty and entering into derivative instruments only with creditworthy counterparties that are generally large financial institutions. Additionally, master netting agreements are used to mitigate risk of loss due to default with counterparties on derivative instruments. We have also entered into International Swaps and Derivatives Association Master Agreements (“ISDA Agreements”) with each of our counterparties. The terms of the ISDA Agreements provide us and each of our counterparties with rights of set-off upon the occurrence of defined acts of default by either us or our counterparty to a derivative, whereby the party not in default may set-off all liabilities owed to the defaulting party against all net derivative asset receivables from the defaulting party. Had all counterparties failed completely to perform according to the terms of the existing contracts, we would have had the right to offset $99.1 million against amounts outstanding under our Revolving Credit Facility at March 31, 2020, reducing our maximum credit exposure to approximately $5.7 million, all of which was with one counterparty. See Note 8 for additional information regarding our Revolving Credit Facility.

Commodity Derivatives

We may use a combination of commodity derivatives (e.g., floating-for-fixed swaps, put options, costless collars and three-way collars) to manage exposure to commodity price volatility. We recognize all derivative instruments at fair value.

Subsequent Events. In April 2020, the company monetized a portion of its 2021 crude oil hedges for total cash proceeds of approximately $18.0 million.  

We enter into natural gas derivative contracts that are indexed to NYMEX-Henry Hub. We also enter into oil derivative contracts indexed to NYMEX-WTI. Our NGL derivative contracts are primarily indexed to OPIS Mont Belvieu.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At March 31, 2020, we had the following open commodity positions:

	Remaining
	2020			2021			2022
Natural Gas Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (MMBtu)		650,000			487,500			300,000
Weighted-average fixed price	$	2.54		$	2.48		$	2.46
Collar contracts:
Two-way collars
Average monthly volume (MMBtu)		420,000			162,500			—
Weighted-average floor price	$	2.60		$	2.58		$	—
Weighted-average ceiling price	$	2.88		$	2.84		$	—
Natural Gas Basis Swaps:
PEPL basis swaps:
Average monthly volume (MMBtu)		600,000			500,000			—
Weighted-average spread	$	(0.46	)	$	(0.40	)	$	—
Crude Oil Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		209,300			116,250			30,000
Weighted-average fixed price	$	57.44		$	56.05		$	55.32
Collar contracts:
Two-way collars
Average monthly volume (Bbls)		14,300			—			—
Weighted-average floor price	$	55.00		$	—		$	—
Weighted-average ceiling price	$	62.10		$	—		$	—
Three-way collars
Average monthly volume (Bbls)		30,500			—			—
Weighted-average ceiling price	$	65.75		$	—		$	—
Weighted-average floor price	$	50.00		$	—		$	—
Weighted-average sub-floor price	$	40.00		$	—		$	—
NGL Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		65,450			22,800			—
Weighted-average fixed price	$	25.27		$	24.25		$	—

Interest Rate Swaps

Periodically, we enter into interest rate swaps to mitigate exposure to market rate fluctuations by converting variable interest rates such as those in our credit agreement to fixed interest rates. At March 31, 2020, we had the following interest rate swap open positions:

	Remaining
	2020			2021			2022
Average Monthly Notional (in thousands)	$	125,000		$	125,000		$	75,000
Weighted-average fixed rate		1.612	%		1.612	%		1.281	%
Floating rate	1 Month LIBOR			1 Month LIBOR			1 Month LIBOR

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AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Balance Sheet Presentation

The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at March 31, 2020 and December 31, 2019. There was no cash collateral received or pledged associated with our derivative instruments since most of the counterparties, or certain of their affiliates, to our derivative contracts are lenders under our credit agreement.

		Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
		March 31,			March 31,			December 31,			December 31,
Type	Balance Sheet Location	2020			2020			2019			2019
		(In thousands)
Commodity contracts	Short-term derivative instruments	$	83,477		$	4,139		$	11,518		$	5,887
Interest rate swaps	Short-term derivative instruments		—			1,621			248			253
Gross fair value			83,477			5,760			11,766			6,140
Netting arrangements			(5,070	)		(5,070	)		(5,887	)		(5,887	)
Net recorded fair value	Short-term derivative instruments	$	78,407		$	690		$	5,879		$	253
Commodity contracts	Long-term derivative instruments	$	28,036		$	513		$	6,990		$	973
Interest rate swaps	Long-term derivative instruments		—			1,981			347			305
Gross fair value			28,036			2,494			7,337			1,278
Netting arrangements			(581	)		(581	)		(973	)		(973	)
Net recorded fair value	Long-term derivative instruments	$	27,455		$	1,913		$	6,364		$	305

(Gains) Losses on Derivatives

We do not designate derivative instruments as hedging instruments for accounting and financial reporting purposes. Accordingly, all gains and losses, including changes in the derivative instruments’ fair values, have been recorded in the accompanying Unaudited Condensed Statements of Consolidated Operations. The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands):

		For the Three Months Ended
	Statements of	March 31,
	Operations Location	2020			2019
Commodity derivative contracts	(Gain) loss on commodity derivatives	$	(107,713	)	$	32,487
Interest rate derivatives	Interest expense, net		3,616			(94	)

Note 7. Asset Retirement Obligations

The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2020 (in thousands):

Asset retirement obligations at beginning of period	$	91,089
Liabilities added from acquisition or drilling		—
Liabilities settled		—
Liabilities removed upon sale of wells		—
Accretion expense		1,513
Revision of estimates		—
Asset retirement obligation at end of period		92,602
Less: Current portion		(623	)
Asset retirement obligations - long-term portion	$	91,979

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AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 8. Long-Term Debt

The following table presents our consolidated debt obligations at the dates indicated:

	March 31,		December 31,
	2020		2019
	(In thousands)
Revolving Credit Facility (1)	$	290,000	$	285,000
Long-term debt	$	290,000	$	285,000

(1) The carrying amount of our Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates.

Revolving Credit Facility

Amplify Energy Operating LLC, our wholly owned subsidiary (“OLLC”), is a party to a reserve-based revolving credit facility (the “Revolving Credit Facility”), subject to a borrowing base of $450.0 million as of March 31, 2020, which is guaranteed by us and all of our current subsidiaries. The Revolving Credit Facility matures on November 2, 2023.

Our borrowing base under our Revolving Credit Facility is subject to redetermination on at least a semi-annual basis primarily based on a reserve engineering report with respect to our estimated natural gas, oil and NGL reserves, which takes into account the prevailing natural gas, oil and NGL prices at such time, as adjusted for the impact of our commodity derivative contracts.

As of March 31, 2020, we were in compliance with all the financial (current ratio and total leverage ratio) and other covenants associated with our Revolving Credit Facility.

Weighted-Average Interest Rates

The following table presents the weighted-average interest rates paid, excluding commitment fees, on our consolidated variable-rate debt obligations for the periods presented:

	For the Three Months Ended
	March 31,
	2020	2019
Revolving Credit Facility	3.97%	5.07%

Letters of Credit

At March 31, 2020, we had no letters of credit outstanding.

Unamortized Deferred Financing Costs

Unamortized deferred financing costs associated with our Revolving Credit Facility was $4.4 million at March 31, 2020. At March 31, 2020, the unamortized deferred financing costs are amortized over the remaining life of our Revolving Credit Facility.

Note 9. Equity (Deficit)

Common Stock

The Company’s authorized capital stock includes 250,000,000 shares of common stock, $0.01 par value per share. The following is a summary of the changes in our common stock issued for the three months ended March 31, 2020:

	Common
	Shares
Balance, December 31, 2019		37,566,540
Issuance of common stock		—
Restricted stock units vested		2,411
Repurchase of common shares (1)		(787	)
Balance, March 31, 2020		37,568,164

(1) Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements.

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AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Warrants

On the May 4, 2017, Legacy Amplify entered into a warrant agreement (the “Warrant Agreement”) with American Stock Transfer & Trust Company, LLC, as warrant agent (“AST”), pursuant to which Legacy Amplify issued warrants to purchase up to 2,173,913 shares of Legacy Amplify’s common stock (representing 8% of Legacy Amplify’s outstanding common stock as of May 4, 2017), including shares of Legacy Amplify’s common stock issuable upon full exercise of the warrants, but excluding any common stock issuable under Legacy Amplify’s Management Incentive Plan, exercisable for a five-year period commencing on May 4, 2017 at an exercise price of $42.60 per share.

On the effective date of the Merger, Legacy Amplify, Midstates and AST entered into an Assignment and Assumption Agreement, pursuant to which the Company agreed to assume Legacy Amplify’s Warrant Agreement.

In connection with the Merger in August 2019, the Company assumed outstanding warrants of 4,647,520 Third Lien Notes Warrants at an exercise price of $22.78 per share (the “Third Lien Warrants”) and 2,332,089 Unsecured Creditor Warrants at an exercise price of $43.67 per share (the “Unsecured Creditor Warrants” and collectively with the Third Lien Warrants, the “Warrants”). As a result of the Merger, the value of the outstanding Warrants was adjusted downward based on the low stock price and estimated fair value as of the Merger date. The Warrants expired on April 21, 2020.

Share Repurchase Program

On December 21, 2018, Legacy Amplify’s board of directors authorized the repurchase of up to $25.0 million of Legacy Amplify outstanding shares of common stock, with repurchases beginning on January 9, 2019. During the three months ended March 31, 2019, Legacy Amplify repurchased 122,581 shares of common stock at an average price of $7.82 for a total cost of approximately $0.9 million. On April 18, 2019, in anticipation of the Merger, Legacy Amplify terminated the repurchase program.

In connection, with the closing of the Merger, the board of directors approved the commencement of an open market share repurchase program of up to $25.0 million of the Company’s outstanding shares of common stock. As of February 28, 2020, the Company had repurchased approximately 4.2 million shares of common stock at an average price of $5.94 per share for a total cost of approximately $24.9 million (inclusive of fees).

Cash Dividend Payment

On March 3, 2020, our board of directors approved a dividend of $0.10 per share of outstanding common stock or $3.8 million in aggregate, which was paid on March 30, 2020, to stockholders of record at the close of business on March 16, 2020. The board of directors of the Company has decided to suspend the quarterly dividend program until further notice. Future dividends, if any, are subject to discretionary approval by the board of directors.

Note 10. Earnings per Share

The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts):

	For the Three Months Ended
	March 31,
	2020			2019
Net loss	$	(367,199	)	$	(31,477	)
Less: Net income allocated to participating restricted stockholders		—			—
Basic and diluted earnings available to common stockholders	$	(367,199	)	$	(31,477	)
Common shares/units:
Common shares outstanding — basic		37,568			22,179
Dilutive effect of potential common shares		—			—
Common shares outstanding — diluted		37,568			22,179
Net earnings per share:
Basic	$	(9.77	)	$	(1.42	)
Diluted	$	(9.77	)	$	(1.42	)
Antidilutive warrants (1)		9,154			2,174

(1) Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect.

21

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 11. Long-Term Incentive Plans

In May 2017, Legacy Amplify implemented the Management Incentive Plan (the “Legacy Amplify MIP”). In connection with the closing of the Merger, on August 6, 2019, the Company assumed the Legacy Amplify MIP.

Restricted Stock Units

Restricted Stock Units with Service Vesting Condition

The restricted stock units with service vesting conditions (“TSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost associated with the TSUs was $0.8 million at March 31, 2020. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 1.7 years.

The following table summarizes information regarding the TSUs granted under the Legacy Amplify MIP for the period presented:

				Weighted-
				Average Grant
	Number of			Date Fair Value
	Units			per Unit (1)
TSUs outstanding at December 31, 2019		291,370		$	5.18
Granted (2)		18,250		$	6.61
Forfeited		(1,244	)	$	5.12
Vested		(2,411	)	$	5.12
TSUs outstanding at March 31, 2020		305,965		$	5.27

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2) The aggregate grant date fair value of TSUs issued for the three months ended March 31, 2020 was $0.1 million based on a grant date market price of $6.61 per share.

Restricted Stock Units with Market and Service Vesting Conditions

The restricted stock units with market and service vesting conditions (“PSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a graded-vesting basis. As such, the Company recognizes compensation cost over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. The Company accounts for forfeitures as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost related to the PSUs was $0.1 million at March 31, 2020. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 1.5 years.

The PSUs will vest based on the satisfaction of service and market vesting conditions with market vesting based on the Company’s achievement of certain share price targets. The PSUs are subject to service-based vesting such that 50% of the PSUs service vest on the applicable market vesting date and an additional 25% of the PSUs service vest on each of the first and second anniversaries of the applicable market vesting date.

In the event of a qualifying termination, subject to certain conditions, (i) all PSUs that have satisfied the market vesting conditions will fully service vest, upon such termination, and (ii) if the termination occurs between the second and third anniversaries of the grant date, then PSUs that have not market vested as of the termination will market vest to the extent that the share targets (in each case, reduced by $0.25) are achieved as of such termination. Subject to the foregoing, any unvested PSUs will be forfeited upon termination of employment.

A Monte Carlo simulation was used in order to determine the fair value of these awards at the grant date.

22

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The assumptions used to estimate the fair value of the PSUs are as follows:

Share price targets	$	12.50		$	15.00		$	17.50
Risk-free interest rate:
Awards Issued on January 1, 2020		1.61	%		1.61	%		1.61	%
Dividend yield		12.1	%		12.1	%		12.1	%
Expected volatility:
Awards Issued on January 1, 2020		60.0	%		60.0	%		60.0	%
Calculated fair value per PSU:
Awards Issued on January 1, 2020	$	3.66		$	2.98		$	2.46

The following table summarizes information regarding the PSUs granted under the Legacy Amplify MIP for the period presented:

				Weighted-
				Average Grant
	Number of			Date Fair Value
	Units			per Unit (1)
PSUs outstanding at December 31, 2019		305,893		$	2.15
Granted (2)		18,250		$	3.03
Forfeited		(1,866	)	$	2.11
Vested		—		$	—
PSUs outstanding at March 31, 2020		322,277		$	2.20

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2) The aggregate grant date fair value of PSUs issued for the three months ended March 31, 2020 was less than $0.1 million based on a calculated fair value price ranging from $2.46 to $3.66 per share.

2017 Non-Employee Directors Compensation Plan

In June 2017, Legacy Amplify implemented the 2017 Non-Employee Directors Compensation Plan (“Legacy Amplify Non-Employee Directors Compensation Plan”) to attract and retain the services of experienced non-employee directors of Legacy Amplify or its subsidiaries. In connection with the closing of the Merger, on August 6, 2019, the Company assumed the Legacy Amplify Non-Employee Directors Compensation Plan.

The restricted stock units with a service vesting condition (“Board RSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost associated with restricted stock unit awards was less than $0.1 million at March 31, 2020. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 2.0 years.

The following table summarizes information regarding the Board RSUs granted under the Legacy Amplify Non-Employee Directors Compensation Plan for the period presented:

			Weighted-
			Average Grant
	Number of		Date Fair Value
	Units		per Unit (1)
Board RSUs outstanding at December 31, 2019		16,157	$	5.12
Granted		—	$	—
Forfeited		—	$	—
Vested		—	$	—
Board RSUs outstanding at March 31, 2020		16,157	$	5.12

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

23

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Compensation Expense

The following table summarizes the amount of recognized compensation expense associated with the Legacy Amplify MIP and Legacy Amplify Non-Employee Directors Compensation Plan, which are reflected in the accompanying Unaudited Condensed Statements of Consolidated Operations for the periods presented (in thousands):

	For the Three Months Ended
	March 31,
	2020		2019
Equity classified awards
TSUs	$	131	$	669
PSUs		37		396
Board RSUs		5		113
	$	173	$	1,178

Note 12. Leases

For the quarter ended March 31, 2020, our leases qualify as operating leases and we did not have any existing or new leases qualifying as financing leases or variable leases. We have leases for office space and equipment in our corporate office and operating regions as well as vehicles, compressors and surface rentals related to our business operations. In addition, we have offshore Southern California pipeline right-of-way use agreements. Most of our leases, other than our corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of our leases can be terminated with 30-day prior written notice. The majority of our month-to-month leases are not included as a lease liability in our balance sheet under ASC 842 because continuation of the lease is not reasonably certain. Additionally, the Company elected the short-term practical expedient to exclude leases with a term of twelve months or less.

Our corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, we use our incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, we apply a portfolio approach based on the applicable lease terms and the current economic environment. We use a reasonable market interest rate for our office equipment and vehicle leases.

For the three months ended March 31, 2020 and 2019, we recognized approximately $0.6 million and $0.5 million, respectively, of costs relating to the operating leases in the Unaudited Condensed Statement of Operations.

Supplemental cash flow information related to the Company’s lease liabilities are included in the table below:

	For the Three Months Ended
	March 31,
	2020		2019
	(In thousands)
Non-cash amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	330	$	5,010

The following table presents the Company’s right-of-use assets and lease liabilities for the period presented:

	March 31,		December 31,
	2020		2019
	(In thousands)
Right-of-use asset	$	4,076	$	4,406
Lease liabilities:
Current lease liability		2,202		1,712
Long-term lease liability		1,901		2,720
Total lease liability	$	4,103	$	4,432

24

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands):

	Office leases		Leased vehicles and office equipment		Total
Remaining in 2020	$	1,207	$	551	$	1,758
2021		1,426		564		1,990
2022		341		199		540
2023 and thereafter		—		—		—
Total lease payments	$	2,974	$	1,314	$	4,288
Less: interest	$	139	$	46	$	185
Present value of lease liabilities	$	2,835	$	1,268	$	4,103

The weighted average remaining lease terms and discount rate for all of our operating leases for the period presented:

	For the Three Months Ended
	March 31,
	2020			2019
Weighted average remaining lease term (years):
Office leases		1.27			2.32
Vehicles		0.55			0.40
Office equipment		0.07			0.12
Weighted average discount rate:
Office leases		3.5	%		4.1	%
Vehicles		1.0	%		0.5	%
Office equipment		0.2	%		0.2	%

Note 13. Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows

Accrued Liabilities

Current accrued liabilities consisted of the following at the dates indicated (in thousands):

	March 31,		December 31,
	2020		2019
Accrued lease operating expense	$	10,692	$	11,794
Accrued capital expenditures		6,559		5,515
Accrued general and administrative expense		2,652		3,126
Operating lease liability		2,202		1,712
Accrued ad valorem tax		1,099		520
Asset retirement obligations		623		623
Accrued interest payable		30		36
Other		43		32
Accrued liabilities	$	23,900	$	23,358

Cash and Cash Equivalents Reconciliation

The following table provides a reconciliation of cash and cash equivalents on the Unaudited Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash on the Unaudited Condensed Statements of Consolidated Cash Flows (in thousands):

	March 31,		December 31,
	2020		2019
Cash and cash equivalents	$	1,894	$	—
Restricted cash		—		325
Total cash, cash equivalents and restricted cash	$	1,894	$	325

25

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unproved Property

We recognized $49.3 million of impairment expense on unproved properties for the three months ended March 31, 2020, which was related to expiring leases and the evaluation of qualitative and quantitative factors related to the current decline in commodity prices. No impairment expense was recorded for unproved properties for the three months ended March 31, 2019.

Supplemental Cash Flows

Supplemental cash flows for the periods presented (in thousands):

	For the Three Months Ended
	March 31,
	2020			2019
Supplemental cash flows:
Cash paid for interest, net of amounts capitalized	$	3,017		$	2,325
Cash paid for reorganization items, net		186			187
Noncash investing and financing activities:
Increase (decrease) in capital expenditures in payables and accrued liabilities		(3,206	)		(2,612	)

Note 14. Related Party Transactions

Related Party Agreements

There have been no transactions in excess of $120,000 between us and any related person in which the related person had a direct or indirect material interest for the three months ended March 31, 2020 and 2019, respectively.

Note 15. Commitments and Contingencies

Litigation and Environmental

We are not aware of any litigation, pending or threatened, that we believe will have a material adverse effect on our financial position, results of operations or cash flows; however, cash flow could be significantly impacted in the reporting periods in which such matters are resolved.

Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify us against liabilities arising from future legal proceedings.

At March 31, 2020 and December 31, 2019, we had no environmental reserves recorded on our Unaudited Condensed Consolidated Balance Sheet.

Minimum Volume Commitment

The Company is party to a gas purchase, gathering and processing contract in Oklahoma, which includes certain minimum NGL commitments. To the extent the Company does not deliver natural gas volumes in sufficient quantities to generate, when processed, the minimum levels of recovered NGLs, it would be required to reimburse the counterparty an amount equal to sum of the monthly shortfall, if any, multiplied by a fee. The Company is not meeting the minimum volume required under these contractual provisions. The commitment fee expense for the three months ended March 31, 2020, was approximately $0.2 million.

The Company is party to a gas purchase, gathering and processing contract in East Texas, which includes certain minimum NGL commitments. The Company anticipates that a shortfall will occur for the year-end 2020 and has established an accrual for the commitment fee expense of $0.3 million for the three months ended March 31, 2020.

Supplemental Bond for Decommissioning Liabilities Trust Agreement

Beta Operating Company, LLC, has an obligation with the BOEM in connection with its 2009 acquisition of our properties in federal waters offshore Southern California. The Company supports this obligation with $161.3 million of A-rated surety bonds and $0.3 million of cash.

Note 16. Income Taxes

The Company had no income tax benefit/(expense) for the three months ended March 31, 2020 and had less than $0.1 million income tax benefit/(expense) for the three months ended March 31, 2019. The Company’s effective tax rate was 0.0% and 0.2% for the three months ended March 31, 2020 and 2019, respectively. The effective tax rates for the three months ended March 31, 2020 and 2019 are different from the statutory U.S. federal income tax rate primarily due to our recorded valuation allowances.

26

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In March 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, to stabilize the economy during the coronavirus pandemic. The CARES Act temporarily suspends and modifies certain tax laws established by the 2017 tax reform law known as the Tax Cuts and Jobs Act, including, but not limited to, modifications to net operating loss limitations, business interest limitations and alternative minimum tax. The CARES Act did not have a material impact on the Company’s current year tax provision.

Note 17. Subsequent Events

Retirement of President, Chief Executive Officer and Director

On April 1, 2020, Mr. Kenneth Mariani notified the board of directors of the Company of his decision to retire. Mr. Mariani vacated his service as President and Chief Executive Officer of the Company and as a member of the board of directors, effective April 3, 2020. Mr. Mariani’s decision to retire stems solely from personal reasons and did not result from any disagreement with the Company, the Company’s management or the board of directors.

Appointment of Interim Chief Executive Officer

Effective upon Mr. Mariani’s retirement, Mr. Martyn Willsher was appointed the Company’s Interim Chief Executive Officer. Mr. Willsher continues to serve in his role as Senior Vice President and Chief Financial Officer of the Company.

COVID-19 Pandemic and Organization of the Petroleum Exporting Countries (“OPEC”)

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine the extent of the impact caused by the COVID-19 pandemic to the Company’s operations.

In addition, in March 2020, oil prices severely declined following unsuccessful negotiations between members of OPEC and certain nonmembers, including Russia, to implement production cuts in an effort to decrease the global oversupply and to rebalance supply and demand due to the ongoing COVID-19 pandemic. In April 2020, members of OPEC and Russia agreed to temporary production reductions, but uncertainty about whether such production cuts will be sufficient to rebalance supply and demand remains and may continue for the foreseeable future. We anticipate further market and commodity price volatility for the remainder of 2020 as a result of the events described above.

Notice of Non-Compliance with New York Stock Exchange (“NYSE”) Continued Listing Standards

On April 20, 2020, the Company received written notification (the “Notice”) from the NYSE that the Company no longer satisfied the continued listing compliance standards set forth under Section 802.01C of the NYSE Listed Company Manual (“Section 802.01C”) because the average closing price of the Company’s common stock was below $1.00 over a 30 consecutive trading-day period that ended April 17, 2020. Under the NYSE’s rules, the Company has six months following receipt of the Notice to regain compliance with the minimum share price requirement.

The Company notified the NYSE of its intent to cure the deficiency and return to compliance with the NYSE’s continued listing requirements. The Company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. Under NYSE rules, the common stock will continue to be listed on the NYSE during this six-month cure period, subject to the Company’s compliance with other continued listing requirements. The common stock symbol “AMPY” will be assigned a “.BC” indicator by the NYSE to signify that the Company currently is not in compliance with the NYSE’s continued listing requirements. If the Company fails to regain compliance with Section 802.01C during the cure period, the common stock will be subject to the NYSE’s suspension and delisting procedures.

On April 20, 2020, the NYSE made a rule filing with the SEC for relief from the $1.00 per share continued listing standard, which became immediately effective on April 21, 2020. The relief provides that the cure period will be suspended until June 30, 2020 and will recommence on July 1, 2020. The Company’s cure period under the relief has been extended to December 29, 2020.

Paycheck Protection Program

On April 24, 2020, the Company received a $5.5 million loan under the Paycheck Protection Program (the “PPP”). The PPP was established as part of the CARES Act to provide loans to qualifying businesses. The loans and accrued interest are forgivable after eight weeks provided that the borrower uses the loan proceeds for eligible purposes. At this time, the Company anticipates that a substantial majority of the loan proceeds will be forgiven under the program. The term of the Company’s PPP loan is two years with an annual interest rate of 1% and no payments of principal or interest due during the six-month period beginning on the date of the PPP loan.

27

AMPLIFY ENERGY CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

28

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and accompanying notes in “Item 1. Financial Statements” contained herein and our Annual Report the Amplify Form 10-K. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Our actual results could differ materially from those discussed in these forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements” in the front of this report.

Overview

We operate in one reportable segment engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Our management evaluates performance based on the reportable business segment as the economic environments are not different within the operation of our oil and natural gas properties. Our business activities are conducted through OLLC our wholly owned subsidiary, and its wholly owned subsidiaries. Our assets consist primarily of producing oil and natural gas properties and are located in Oklahoma, the Rockies, in federal waters offshore Southern California, East Texas / North Louisiana and South Texas. Most of our oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells. As of December 31, 2019:

• Our total estimated proved reserves were approximately 163.0 MBoe, of which approximately 43% were oil and 80% were classified as proved developed reserves;

• We produced from 2,643 gross (1,567 net) producing wells across our properties, with an average working interest of 59% and the Company is the operator of record of the properties containing 93% of our total estimated proved reserves; and

• Our average net production for the three months ended December 31, 2019 was 29.9 MBoe/d, implying a reserve-to-production ratio of approximately 15 years.

Industry Trends and Outlook

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine the extent of the impact caused by the COVID-19 pandemic to the Company’s operations.

In addition, in March 2020, oil prices severely declined following unsuccessful negotiations between members of OPEC and certain nonmembers, including Russia, to implement production cuts in an effort to decrease the global oversupply and to rebalance supply and demand due to the ongoing COVID-19 pandemic. In April 2020, members of OPEC and Russia agreed to temporary production reductions, but uncertainty about whether such production cuts will be sufficient to rebalance supply and demand remains and may continue for the foreseeable future. We anticipate further market and commodity price volatility for the remainder of 2020 as a result of the events described above.

The reductions in commodity prices has resulted in lower levels of cash flow from operating activities. In addition, the borrowing base under our Revolving Credit Facility is subject to redetermination on at least a semi-annual basis primarily based on an engineering report with respect to our estimated oil, NGL and natural gas reserves, which will take into account the prevailing oil, NGL and natural gas prices at such time, adjusted for the impact of our commodity derivative contracts. Continued low commodity prices will likely adversely impact our redeterminations and may further impact it in the future. The reduction in commodity prices has directly led to an impairment of our oil and natural gas properties. There may be further impairments in future periods if commodity prices continue to decline.

The Company has executed several significant initiatives to better position the Company through the downturn, including significant decreases to operating and general and administrative expenses, substantial reductions to capital programs, the monetization of a portion of the Company’s 2021 in-the-money crude oil hedges, the receipt of loan proceeds from the federal government PPP program, Beta royalty relief and the suspension of the quarterly dividend.

29

Recent Developments

Notice of Non-Compliance with NYSE Continued Listing Standards

On April 20, 2020, the Company received written notification from the NYSE that the Company no longer satisfied the continued listing compliance standards set forth under Section 802.01C because the average closing price of the Company’s common stock was below $1.00 over a 30 consecutive trading-day period that ended April 17, 2020. Under the NYSE’s rules, the Company has six months following receipt of such notice to regain compliance with the minimum share price requirement.

The Company notified the NYSE of its intent to cure the deficiency and return to compliance with the NYSE’s continued listing requirements. The Company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. Under NYSE rules, the common stock will continue to be listed on the NYSE during this six-month cure period, subject to the Company’s compliance with other continued listing requirements. The common stock symbol “AMPY” will be assigned a “.BC” indicator by the NYSE to signify that the Company currently is not in compliance with the NYSE’s continued listing requirements. If the Company fails to regain compliance with Section 802.01C during the cure period, the common stock will be subject to the NYSE’s suspension and delisting procedures.

On April 20, 2020, the NYSE made a rule filing with the SEC for relief from the $1.00 per share continued listing standard, which became immediately effective on April 21, 2020. The relief provides that the cure period will be suspended until June 30, 2020 and will recommence on July 1, 2020. The Company’s cure period under the relief has been extended to December 29, 2020.  

Retirement of President, Chief Executive Officer and Director

On April 1, 2020, Mr. Kenneth Mariani notified the board of directors of the Company of his decision to retire. Mr. Mariani vacated his service as President and Chief Executive Officer of the Company and as a member of the board of directors, effective April 3, 2020. Mr. Mariani’s decision to retire stems solely from personal reasons and did not result from any disagreement with the Company, the Company’s management or the board of directors.

Appointment of Interim Chief Executive Officer

Effective upon Mr. Mariani’s retirement, Mr. Martyn Willsher was appointed the Company’s Interim Chief Executive Officer. Mr. Willsher continues to serve in his role as Senior Vice President and Chief Financial Officer of the Company.

Business Environment and Operational Focus

We use a variety of financial and operational metrics to assess the performance of our oil and natural gas operations, including: (i) production volumes; (ii) realized prices on the sale of our production; (iii) cash settlements on our commodity derivatives; (iv) lease operating expense; (v) gathering, processing and transportation; (vi) general and administrative expense; and (vii) Adjusted EBITDA (defined below).

Sources of Revenues

Our revenues are derived from the sale of natural gas and oil production, as well as the sale of NGLs that are extracted from natural gas during processing. Production revenues are derived entirely from the continental United States. Natural gas, NGL and oil prices are inherently volatile and are influenced by many factors outside our control. In order to reduce the impact of fluctuations in natural gas and oil prices on revenues, we intend to periodically enter into derivative contracts that fix the future prices received. At the end of each period the fair value of these commodity derivative instruments are estimated and because hedge accounting is not elected, the changes in the fair value of unsettled commodity derivative instruments are recognized in earnings at the end of each accounting period.

Critical Accounting Policies and Estimates

A discussion of our critical accounting policies and estimates is included in Amplify Form 10-K. Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations. These estimates, in our opinion, are subjective in nature, require the use of professional judgment and involve complex analysis.

When used in the preparation of our consolidated financial statements, such estimates are based on our current knowledge and understanding of the underlying facts and circumstances and may be revised as a result of actions we take in the future. Changes in these estimates will occur as a result of the passage of time and the occurrence of future events. Subsequent changes in these estimates may have a significant impact on our consolidated financial position, results of operations and cash flows.

30

Results of Operations

The results of operations for the three months ended March 31, 2020 and 2019 have been derived from our consolidated financial statements. The following table summarizes certain of the results of operations for the periods indicated.

	For the Three Months Ended
	March 31,
	2020			2019
	($ In thousands)
Oil and natural gas sales	$	57,787		$	65,067
Lease operating expense		35,723			28,910
Gathering, processing and transportation		5,053			4,657
Exploration expense		16			15
Taxes other than income		3,986			4,409
Depreciation, depletion and amortization		15,556			11,166
Impairment expense		455,031			—
General and administrative expense		8,353			9,308
Accretion of asset retirement obligations		1,513			1,311
(Gain) loss on commodity derivative instruments		(107,713	)		32,487
Interest expense, net		(7,647	)		(4,089	)
Reorganization items, net		(186	)		(187	)
Income tax benefit (expense)		—			50
Net loss		(367,199	)		(31,477	)
Oil and natural gas revenue:
Oil sales	$	41,851		$	40,057
NGL sales		5,122			5,865
Natural gas sales		10,814			19,145
Total oil and natural gas revenue	$	57,787		$	65,067
Production volumes:
Oil (MBbls)		982			752
NGLs (MBbls)		454			265
Natural gas (MMcf)		7,586			5,490
Total (MBoe)		2,700			1,932
Average net production (MBoe/d)		29.7			21.5
Average sales price:
Oil (per Bbl)	$	42.64		$	53.28
NGL (per Bbl)		11.29			22.09
Natural gas (per Mcf)		1.43			3.49
Total (per Boe)	$	21.41		$	33.67
Average unit costs per Boe:
Lease operating expense	$	13.23		$	14.96
Gathering, processing and transportation		1.87			2.41
Taxes other than income		1.48			2.28
General and administrative expense		3.09			4.82
Depletion, depreciation and amortization		5.76			5.78

For the three months ended March 31, 2020 compared to the three months ended March 31, 2019

Net losses of $367.2 million and $31.5 million were recorded for the three months ended March 31, 2020 and 2019, respectively.

Oil, natural gas and NGL revenues were $57.8 million and $65.1 million for the three months ended March 31, 2020 and 2019, respectively. Average net production volumes were approximately 29.7 MBoe/d and 21.5 MBoe/d for the three months ended March 31, 2020 and 2019, respectively. The increase in production volumes was primarily due to the Merger. The average realized sales price was $21.41 per Boe and $33.67 per Boe for the three months ended March 31, 2020 and 2019, respectively. The decrease in average realized sales price is primarily due to decrease in commodity prices. Overall decrease in revenue is due to decline in well activity, decrease in commodity pricing and offset with the additional volume related to the Merger.

Lease operating expense was $35.7 million and $28.9 million for the three months ended March 31, 2020 and 2019, respectively. The change in lease operating expense was primarily related to the Merger and increased workover activity. On a per Boe basis, lease operating expense was $13.23 and $14.96 for the three months ended March 31, 2020 and 2019, respectively.

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Gathering, processing and transportation was $5.1 million and $4.7 million for the three months ended March 31, 2020 and 2019, respectively. On a per Boe basis, gathering, processing and transportation was $1.87 and $2.41 for the three months ended March 31, 2020 and 2019, respectively.

Taxes other than income was $4.0 million and $4.4 million for the three months ended March 31, 2020 and 2019, respectively. On a per Boe basis, taxes other than income were $1.48 and $2.28 for the three months ended March 31, 2020 and 2019, respectively. The change in taxes other than income on a per Boe basis was primarily due to a decrease in commodity prices.

Depreciation, depletion and amortization (“DD&A expense”) was $15.6 million and $11.2 million for the three months ended March 31, 2020 and 2019, respectively. The change in DD&A expense is due to the Merger.

Impairment expense was $455.0 million for the three months ended March 31, 2020. We recognized $405.7 million of impairment expense on proved properties. The estimated future cash flows expected from these properties were compared to their carrying values and determined to be unrecoverable primarily as a result of declining commodity prices. We recognized $49.3 million of impairment expense on unproved properties, which was related to expiring leases and the evaluation of qualitative and quantitative factors related to the current decline in commodity prices. No impairment expense was recorded for the three months ended March 31, 2019.

General and administrative expense was $8.4 million and $9.3 million for the three months ended March 31, 2020 and 2019, respectively. The change in general and administrative expense is primarily related to a decrease in stock compensation expense by $1.0 million due to the revaluation of post-merger expense and a $0.7 million reduction for 2019 bonus true-up which was partially offset with an increase of $0.6 million in professional services.

Net gains on commodity derivative instruments of $107.7 million were recognized for the three months ended March 31, 2020, consisting of $95.2 million increase in the fair value of open positions and $12.5 million of cash settlements received on expired positions. Net losses on commodity derivative instruments of $32.5 million were recognized for the three months ended March 31, 2019, consisting of $31.2 million decrease in fair value of open positions and $1.3 million of cash settlements paid on expired positions.

Given the volatility of commodity prices, it is not possible to predict future reported mark-to-market net gains or losses and the actual net gains or losses that will ultimately be realized upon settlement of the hedge positions in future years. If commodity prices at settlement are lower than the prices of the hedge positions, the hedges are expected to partially mitigate the otherwise negative effect on earnings of lower oil, natural gas and NGL prices. However, if commodity prices at settlement are higher than the prices of the hedge positions, the hedges are expected to dampen the otherwise positive effect on earnings of higher oil, natural gas and NGL prices and will, in this context, be viewed as having resulted in an opportunity cost.

Interest expense, net was $7.6 million and $4.1 million for the three months ended March 31, 2020 and 2019, respectively. Interest expense included losses on interest rate swaps of approximately $3.6 million for the three months ended March 31, 2020 and a gain on interest rate swaps of $0.1 million for the three months ended March 31, 2019.

Average outstanding borrowings under our Revolving Credit Facility were $295.1 million and $278.0 million for the three months ended March 31, 2020 and 2019, respectively.

Adjusted EBITDA

We include in this report the non-GAAP financial measure Adjusted EBITDA and provide our reconciliation of Adjusted EBITDA to net income and net cash flows from operating activities, our most directly comparable financial measures calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss):

Plus:

• Interest expense;

• Income tax expense;

• DD&A;

• Impairment of goodwill and long-lived assets (including oil and natural gas properties);

• Accretion of AROs;

• Loss on commodity derivative instruments;

• Cash settlements received on expired commodity derivative instruments;

• Losses on sale of assets;

• Share/unit-based compensation expenses;

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• Exploration costs;

• Acquisition and divestiture related expenses;

• Restructuring related costs;

• Reorganization items, net;

• Severance payments; and

• Other non-routine items that we deem appropriate.

Less:

• Interest income;

• Income tax benefit;

• Gain on commodity derivative instruments;

• Cash settlements paid on expired commodity derivative instruments;

• Gains on sale of assets and other, net; and

• Other non-routine items that we deem appropriate.

We believe that Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure.

Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income or cash flows from operating activities as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We believe that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure our ability to meet debt service requirements.

In addition, management uses Adjusted EBITDA to evaluate actual cash flow available to develop existing reserves or acquire additional oil and natural gas properties.

The following tables present our reconciliation of Adjusted EBITDA to net income and net cash flows from operating activities, our most directly comparable GAAP financial measures, for each of the periods indicated.

Reconciliation of Adjusted EBITDA to Net Income (Loss)

	For the Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Net loss	$	(367,199	)	$	(31,477	)
Interest expense, net		7,647			4,089
Income tax expense (benefit)		—			(50	)
DD&A		15,556			11,166
Impairment expense		455,031			—
Accretion of AROs		1,513			1,311
(Gains) losses on commodity derivative instruments		(107,713	)		32,487
Cash settlements received (paid) on expired commodity derivative instruments		12,500			(1,277	)
Acquisition and divestiture related expenses		481			364
Share-based compensation expense		(911	)		1,936
Exploration costs		16			15
(Gain) loss on settlement of AROs		—			143
Bad debt expense		110			101
Reorganization items, net		186			187
Severance payments		19			39
Adjusted EBITDA	$	17,236		$	19,034

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Reconciliation of Adjusted EBITDA to Net Cash from Operating Activities

	For the Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Net cash provided by operating activities	$	13,089		$	10,800
Changes in working capital		(455	)		3,006
Interest expense, net		7,647			4,089
Gain (loss) on interest rate swaps		(3,617	)		94
Cash settlements paid (received) on interest rate swaps		(22	)		—
Amortization and write-off of deferred financing fees		(309	)		(308	)
Acquisition and divestiture related expenses		481			364
Income tax expense (benefit) - current portion		—			(50	)
Exploration costs		16			15
Plugging and abandonment cost		—			305
Reorganization items, net		186			187
Severance payments		19			39
Other		201			493
Adjusted EBITDA	$	17,236		$	19,034

Liquidity and Capital Resources

Overview. Our ability to finance our operations, including funding capital expenditures and acquisitions, meet our indebtedness obligations, refinance our indebtedness or meet our collateral requirements will depend on our ability to generate cash in the future. Our primary sources of liquidity and capital resources have historically been cash flows generated by operating activities and borrowings under our Revolving Credit Facility. For the remainder of 2020, we expect our primary funding sources to be cash flows generated by operating activities and available borrowing capacity under our Revolving Credit Facility.

Capital Markets. We do not currently anticipate any near-term capital markets activity, but we will continue to evaluate the availability of public debt and equity for funding potential future growth projects and acquisition activity.

Hedging. Commodity hedging has been and remains an important part of our strategy to reduce cash flow volatility. Our hedging activities are intended to support oil, NGL, and natural gas prices at targeted levels and to manage our exposure to commodity price fluctuations. We intend to enter into commodity derivative contracts at times and on terms desired to maintain a portfolio of commodity derivative contracts covering at least 25% - 50% of our estimated production from total proved developed producing reserves over a one-to-three year period at any given point of time to satisfy the hedging covenants in our Revolving Credit Facility and pursuant to our internal policies. We may, however, from time to time, hedge more or less than this approximate amount. Additionally, we may take advantage of opportunities to modify our commodity derivative portfolio to change the percentage of our hedged production volumes when circumstances suggest that it is prudent to do so. The current market conditions may also impact our ability to enter into future commodity derivative contracts. For additional information regarding the volumes of our production covered by commodity derivative contracts and the average prices at which production is hedged as of March 31, 2020, see “Item 3. Quantitative and Qualitative Disclosures About Market Risk — Counterparty and Customer Credit Risk.”

We evaluate counterparty risks related to our commodity derivative contracts and trade credit. Should any of these financial counterparties not perform, we may not realize the benefit of some of our hedges under lower commodity prices. We sell our oil and natural gas to a variety of purchasers. Non-performance by a customer could also result in losses.

Capital Expenditures. Our total capital expenditures were approximately $15.3 million for the three months ended March 31, 2020, which were primarily related to capital workovers and facilities located in Oklahoma and California and non-operated drilling activities in South Texas.

Working Capital. We expect to fund our working capital needs primarily with operating cash flows. We also plan to reinvest a sufficient amount of our operating cash flow to fund our expected capital expenditures. Our debt service requirements are expected to be funded by operating cash flows. See Note 8 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” and “— Overview” of this quarterly report for additional information.

As of March 31, 2020, we had working capital of $60.7 million primarily due to being in a receivable position with our short-term derivatives of $78.4 million, accounts receivable of $24.7 million, and prepaid expenses of $11.4 million, offset by accrued liabilities of $23.9 million and revenues payable of $27.1 million.

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Debt Agreements

Revolving Credit Facility. On November 2, 2018, OLLC as borrower, entered into the Revolving Credit Facility (as amended and supplemented to date) with Bank of Montreal, as administrative agent. At March 31, 2020, our borrowing base under our Revolving Credit Facility was subject to redetermination on at least a semi-annual basis primarily based on a reserve engineering report with respect to our estimated natural gas, oil and NGL reserves, which takes into account the prevailing natural gas, oil and NGL prices at such time, as adjusted for the impact of our commodity derivative contracts. The borrowing base as of March 31, 2020, was $450.0 million.

As of March 31, 2020, we were in compliance with all the financial (current ratio and total leverage ratio) and other covenants associated with our Revolving Credit Facility.

As of March 31, 2020, we had approximately $160.0 million of available borrowings under our Revolving Credit Facility. See Note 8 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information regarding our Revolving Credit Facility.

Cash Flows from Operating, Investing and Financing Activities

The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated. The cash flows for the three months ended March 31, 2020 and 2019, have been derived from our Unaudited Condensed Consolidated Financial Statements. For information regarding the individual components of our cash flow amounts, see the Unaudited Condensed Statements of Consolidated Cash Flows included under “Item 1. Financial Statements” of this quarterly report.

	For the Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Net cash provided by operating activities	$	13,089		$	10,800
Net cash used in investing activities		(12,720	)		(10,500	)
Net cash provided by (used in) financing activities		1,200			(25,128	)

Operating Activities. Key drivers of net operating cash flows are commodity prices, production volumes and operating costs. Net cash provided by operating activities was $13.1 million and $10.8 million for the three months ended March 31, 2020 and 2019, respectively. Production volumes were approximately 29.7 MBoe/d and 21.5MBoe/d for the three months ended March 31, 2020 and 2019, respectively. The average realized sales prices were $21.41 per Boe and $33.67 per Boe for the three months ended March 31, 2020 and 2019, respectively. Lease operating expenses were $35.7 million and $28.9 million for the three months ended March 31, 2020 and 2019, respectively. Gathering, processing and transportation was $5.1 million and $4.7 million for the three months ended March 31, 2020 and 2019, respectively.

Net cash provided by operating activities for the three months ended March 31, 2020 included $12.5 million of cash receipts on expired derivative instruments compared to $1.3 million of cash paid on expired derivatives for the three months ended March 31, 2019. For the three months ended March 31, 2020, we had net gains on derivative instruments of $104.1 million compared to a net loss of $32.4 million for the three months ended March 31, 2019.

Investing Activities. Net cash provided by investing activities for the three months ended March 31, 2020 was $12.7 million, of which $12.4 million was used for additions to oil and natural gas properties. Net cash used in investing activities for the three months ended March 31, 2019 was $10.5 million, of which $10.4 million was used for additions to oil and natural gas properties.

Financing Activities. The Company had net borrowings of $5.0 million for the three months ended March 31, 2020 and net repayments of $24.0 million for the three months ended March 31, 2019 related to our Revolving Credit Facility.

On March 3, 2020, our board of directors declared a dividend of $0.10 per share on our outstanding common stock, which was paid on March 30, 2020 to stockholders of record at the close of business on March 16, 2020.

Contractual Obligations

During the three months ended March 31, 2020, there were no significant changes in our consolidated contractual obligations from those reported in the Amplify Form 10-K except for the Revolving Credit Facility borrowings and repayments.

Off–Balance Sheet Arrangements

As of March 31, 2020, we had no off–balance sheet arrangements.

Recently Issued Accounting Pronouncements

For a discussion of recent accounting pronouncements that will affect us, see Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

In the normal course of our business operations, we are exposed to certain risks, including commodity prices. We may enter into derivative instruments to manage or reduce market risk, but do not enter into derivative agreements for speculative purposes. We do not designate these or plan to designate future derivative instruments as hedges for accounting purposes. Accordingly, the changes in the fair value of these instruments are recognized currently in earnings. We believe that our exposures to market risk have not changed materially since those reported under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” included in the Legacy Amplify Form 10-K.

Commodity Price Risk

Our major market risk exposure is in the prices that we receive for our oil, natural gas and NGL production. To reduce the impact of fluctuations in commodity prices on our revenues, we periodically enter into derivative contracts with respect to a portion of our projected production through various transactions that fix the future prices we receive. It has been our practice to enter into fixed price swaps and costless collars only with lenders and their affiliates under our Revolving Credit Facility.

For additional information regarding the volumes of our production covered by commodity derivative contracts and the average prices at which production is hedged as of March 31, 2020, see Note 6 of the Notes to Unaudited Condensed Consolidated Financial Statements included “Item 1. Financial Statements” of this quarterly report.

Interest Rate Risk

Our risk management policy provides for the use of interest rate swaps to reduce the exposure to market rate fluctuations by converting variable interest rates to fixed interest rates. See Note 6 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report for interest rate swap arrangements that were outstanding at March 31, 2020.

Counterparty and Customer Credit Risk

We are also subject to credit risk due to the concentration of our oil and natural gas receivables with several significant customers. In addition, our derivative contracts may expose us to credit risk in the event of nonperformance by counterparties. Some of the lenders, or certain of their affiliates, under our previous and current credit agreements are counterparties to our derivative contracts. While collateral is generally not required to be posted by counterparties, credit risk associated with derivative instruments is minimized by limiting exposure to any single counterparty and entering into derivative instruments only with counterparties that are large financial institutions. Additionally, master netting agreements are used to mitigate risk of loss due to default with counterparties on derivative instruments. These agreements allow us to offset our asset position with our liability position in the event of default by the counterparty. We have also entered into ISDA Agreements with each of our counterparties. The terms of the ISDA Agreements provide us and each of our counterparties with rights of set-off upon the occurrence of defined acts of default by either us or our counterparty to a derivative, whereby the party not in default may set-off all liabilities owed to the defaulting party against all net derivative asset receivables from the defaulting party. Had all counterparties failed completely to perform according to the terms of the existing contracts, we would have had the right to offset $99.1 million against amounts outstanding under our Revolving Credit Facility at March 31, 2020, reducing our maximum credit exposure to approximately $5.7 million, all of which was with one counterparty.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including the principal executive officer and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) and under the Exchange Act) as of the end of the period covered by this quarterly report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including the principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure, and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon the evaluation, the principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2020.

The full impact of COVID-19 on our business is uncertain. In order to protect the health and safety of our employees, we took proactive steps to allow employees to work remotely and to reduce the number of employees on site at any one time in our field areas to comply with social distancing guidelines. We believe that our internal controls and procedures are still functioning as designed and were effective for the most recent quarter.

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Change in Internal Control Over Financial Reporting

No changes in our internal control over financial reporting occurred during the most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 are filed as Exhibits 31.1 and 31.2, respectively, to this quarterly report.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

For information regarding legal proceedings, see Part I, “Item 1. Financial Statements,” Note 15, “Commitments and Contingencies — Litigation and Environmental” of the Notes to Unaudited Condensed Consolidated Financial Statements included in this quarterly report, which is incorporated herein by reference.

ITEM 1A. RISK FACTORS.

Our business faces many risks. Any of the risks discussed elsewhere in this quarterly report and our other SEC filings could have a material impact on our business, financial position or results of operations. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. In addition to the risk factors disclosed in Item 1A. Risk Factors in our 2019 Form 10-K, we face risks including the following:

The oversupply of oil and natural gas and lower demand caused by the COVID-19 pandemic, the failure of oil producing countries to sufficiently curtail production and general global economic instability may result in transportation and storage constraints, reduced production or the shut-in of our producing wells, any of which would adversely affect our business, financial condition and results of operations.

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty regarding the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies. The outbreak of COVID-19 in the United States and the uncertainty of its impact, has contributed to an unprecedented oversupply of and decline in demand for oil and natural gas.  At this time, the full extent to which COVID-19 will negatively impact the global economy and our business is uncertain.

In addition, in March 2020, oil prices severely declined following unsuccessful negotiations between members of OPEC and certain nonmembers, including Russia, to implement production cuts in an effort to decrease the global oversupply and to rebalance supply and demand due to the ongoing COVID-19 pandemic. In April 2020, members of OPEC and Russia agreed to temporary production reductions, but uncertainty about whether such production cuts will be sufficient to rebalance supply and demand remains and may continue for the foreseeable future. We anticipate further market and commodity price volatility for the remainder of 2020 as a result of the events described above.

To the extent that the outbreak of COVID-19 continues to negatively impact demand and OPEC members and other oil exporting nations fail to agree to take actions aimed at supporting and stabilizing commodity prices, we expect there to be excess supply of oil and natural gas for a sustained period. This excess supply could, in turn, result in transportation and storage capacity constraints, as well as shut-ins and production curtailment in the United States. If, in the future, our transportation and/or storage capacity becomes constrained, we may be required to shut-in wells or curtail production, which may adversely affect our business, financial condition and results of operations.  

In addition, uncertainties regarding the global economic and financial environment could lead to an extended national or global economic recession. A slowdown in economic activity caused by a recession would likely reduce national and worldwide demand for oil and natural gas and result in lower commodity prices. Costs of exploration, development and production have not yet adjusted to current economic conditions, or in proportion to the significant reduction in product prices.

Over the past several years, capital and credit markets for the oil and natural gas industry have experienced volatility and disruption. Further market volatility and disruption and concerns regarding borrower solvency may substantially diminish the availability of funds from those markets, increase the cost of accessing the credit markets, subject borrowers to stricter lending standards, or may cause lenders to cease providing funding to borrowers, any of which may adversely affect our business, financial condition and results of operations.

We are currently out of compliance with the NYSE minimum share price requirement and are at risk of the NYSE delisting our common stock, which would have an adverse impact on the trading volume, liquidity and market price of our common stock.  

On April 20, 2020, the Company received written notification from the NYSE that the Company no longer satisfied the continued listing compliance standards set forth under Section 802.01C because the average closing price of the Company’s common stock was below $1.00 over a 30 consecutive trading-day period that ended April 17, 2020. Under the NYSE’s rules, the Company has six months following receipt of the such notification to regain compliance with the minimum share price requirement.

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The Company notified the NYSE of its intent to cure the deficiency and return to compliance with the NYSE’s continued listing requirements. The Company can regain compliance at any time duringthesix-monthcureperiod if on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least$1.00and an average closing share price of at least$1.00over the30trading-dayperiodending on the last trading day of that month. Under NYSE rules, the common stock will continue to be listed on the NYSE duringthissix-monthcureperiod, subject to the Company’s compliance with other continued listing requirements. The common stock symbol “AMPY” will be assigned a “.BC” indicator by the NYSE to signify that the Company currently is not in compliance with the NYSE’s continued listing requirements.

If the Company fails to regain compliance with Section 802.01C during the cure period, the common stock will be subject to the NYSE’s suspension and delisting procedures. On April 20, 2020, the NYSE made a rule filing with the SEC for relief from the $1.00 per share continued listing standard, which became immediately effective on April 21, 2020. The relief provides that the cure period will be suspended until June 30, 2020 and will recommence on July 1, 2020. The Company’s cure period under the relief has been extended to December 29, 2020.

Any such delisting could affect the market liquidity of our common stock, and, accordingly, the market price of our common stock could decrease. A delisting of our common stock from the NYSE could negatively impact us as it would likely reduce the liquidity and market price of our common stock; reduce the number of investors willing to hold or acquire our common stock; and negatively impact our ability to access equity markets and obtain financing.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The following table summarizes our repurchase activity during the three months ended March 31, 2020:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
							(In thousands)
Common Shares Repurchased (1)
January 1, 2020 - January 31, 2020		787	$	6.61		—	n/a
February 1, 2020 - February 29, 2020		—	$	—		—	n/a
March 1, 2020 -March 31, 2020		—	$	—		—	n/a

(1) Common shares are generally net-settled by shareholders to cover the required withholding tax upon vesting. The Company repurchased the remaining vesting shares on the vesting date at current market price. See Note 9 of the Notes to the Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

Exhibit Number		Description
3.1	—	Second Amended and Restated Certificate of Incorporation of Midstates Petroleum Company, Inc. (filed as Exhibit 3.1 to the Company’s Registration Statement on Form 8-A filed on October 21, 2016, and incorporated herein by reference).
3.2	—	Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Midstates Petroleum Company, Inc., dated August 6, 2019 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K (File No. 001-35512) filed on August 6, 2019).
3.3	—	Second Amended and Restated Bylaws of Midstates Petroleum Company Inc. (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K (File No. 001-35512) filed on August 6, 2019).

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Exhibit Number		Description
10.1*	—	Employment Agreement, dated May 1, 2019, by and between Legacy Amplify and Tony Lopez.
31.1*	—	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.
31.2*	—	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.
32.1**	—	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	—	XBRL Instance Document
101.SCH*	—	XBRL Schema Document
101.CAL*	—	XBRL Calculation Linkbase Document
101.DEF*	—	XBRL Definition Linkbase Document
101.LAB*	—	XBRL Labels Linkbase Document
101.PRE*	—	XBRL Presentation Linkbase Document

* Filed as an exhibit to this Quarterly Report on Form 10-Q.

** Furnished as an exhibit to this Quarterly Report on Form 10-Q.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Amplify Energy Corp.
	(Registrant)
Date: May 6, 2020	By:	/s/ Martyn Willsher
	Name:	Martyn Willsher
	Title:	Interim Chief Executive Officer, Senior Vice President and Chief Financial Officer
Date: May 6, 2020	By:	/s/ Denise DuBard
	Name:	Denise DuBard
	Title:	Vice President and Chief Accounting Officer

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EX-10.1

Amplify Energy Corp.

500 Dallas Street, Suite 1700    

Houston, TX 77002

(713) 490-8900

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is entered into by and between AMPLIFY ENERGY CORP., a Delaware corporation (the “Company”), and TONY LOPEZ (the “Employee”), effective as of May 1, 2019 (the “Effective Date”), on the terms set forth herein. The Company and Employee may sometimes hereafter be referred to singularly as a “Party” or collectively as the “Parties.”

WHEREAS, the Parties intend for the terms of this Agreement to govern the terms of the Employee’s employment with the Company and to replace and supersede any prior agreements, understands, discussions or negotiations, whether written or oral, between the parties hereto relating to the subject matter hereof, including, without limitation, that certain employment agreement between the Company and the Employee, dated as of June 18, 2018 (the “Prior Agreement”)

Accordingly, the Parties, intending to be legally bound, agree as follows:

Position and Duties

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1.1Employment; Titles; Reporting. The Company agrees to employ the Employee and the Employee agrees to commence employment with the Company, upon the terms and subject to the conditions provided under this Agreement. During the Employment Term (as defined in Section 2), the Employee will serve the Company as its Vice President Corporate Engineering. In such capacity, the Employee will report to the Chief Executive Officer of the Company (the “CEO”) or such position designated by the CEO and otherwise will be subject to the direction and control of the CEO or such position designated by the CEO, and the Employee will have such duties, responsibilities and authorities as may be assigned to the Employee by the CEO or such position designated by the CEO from time to time to the extent consistent with Employee’s position as Vice President Corporate Engineering  in a publicly traded company comparable to the Company.

1.2Duties. During the Employment Term, the Employee will devote substantially all of the Employee’s full working time to the business and affairs of the Company, will use the Employee’s best efforts to promote the Company’s interests and will perform the Employee’s duties and responsibilities faithfully, diligently and to the best of the Employee’s ability, consistent with sound business practices. The Employee may be required by the CEO and/or the Board of Directors of the Company (the “Board”) to provide services to, or otherwise serve as an officer or director of, any direct or indirect subsidiary of the Company. The Employee will comply with the Company’s policies, codes and procedures, as they may be in effect from time to time, applicable to executive officers of the Company. Subject to the preceding sentence, the Employee may, with the prior written approval of the Board in each instance, engage in other business and charitable activities, provided that such charitable and/or other business activities do not violate Section 7,

create a conflict of interest or the appearance of a conflict of interest with the Company, or interfere, individually or in the aggregate, with the performance of the Employee’s obligations to the Company under this Agreement.

1.3Place of Employment. The Employee will perform the Employee’s duties under this Agreement at the Company’s offices in Houston, Texas. The Employee understands and agrees that Employee will be required to travel from time to time for purposes of the Company’s business.

Term of Employment

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The term of the Employee’s employment by the Company under this Agreement (the “Employment Term”) will commence on the Effective Date and will continue until the Employee’s employment is terminated by either Party under Section 5. The date on which the Employee’s employment ends is referred to in this Agreement as the “Termination Date.” For the purpose of Sections 5 and 6 of this Agreement, the Termination Date shall be the date upon which the Employee incurs a “separation from service” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and regulations issued thereunder (collectively, “Code Section 409A”).

Compensation

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3.1Base Salary. During the Employment Term, the Employee will be entitled to receive a base salary (“Base Salary”) at an annual rate of not less than $270,000 for services rendered to the Company and any of its direct or indirect subsidiaries, payable in accordance with the Company’s regular payroll practices. The Employee’s Base Salary shall be reviewed annually by the Board and may be adjusted upward in the Board’s sole discretion, but not downward.

3.2Bonus Compensation. During the Employment Term, the Employee shall be eligible for discretionary bonus compensation with a target of 60% of the Employee’s Base Salary (the “Target Bonus”) for each complete calendar year that the Employee is employed by the Company hereunder (any bonus compensation payable, the “Annual Bonus”). The performance targets that must be achieved in order to be eligible for certain bonus levels shall be established by the Board (or a committee thereof) annually. Each Annual Bonus, if any, shall be paid as soon as administratively feasible after the Board (or a committee thereof) certifies whether the applicable performance targets for the applicable calendar year have been achieved, but in no event later than March 15 following the end of such calendar year. Notwithstanding anything in this Section 3.2 to the contrary, but subject to Section 6 below, no Annual Bonus, if any, nor any portion thereof, shall be payable for any calendar year unless the Employee remains continuously employed by the Company from the Effective Date through the date on which such Annual Bonus is paid. Any Annual Bonus will be paid in the form of (a) cash, with respect to 25% of the amount of the Annual Bonus, and (b) fully-vested shares of the Company’s common stock having an aggregate fair market value on the grant date (as determined by the Board) equal to 75% of the amount of the Annual Bonus.

3.3Long-Term Incentive Compensation. Long-term incentive compensation awards may be made to the Employee from time to time during the Employment Term by the Board in its

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sole discretion, whose decision will be based upon performance and award guidelines for executive officers of the Company established periodically by the Board in its sole discretion.

Expenses and Other Benefits

.

4.1Reimbursement of Business Expenses. The Employee will be entitled to receive prompt reimbursement for all reasonable business expenses incurred by the Employee during the Employment Term (in accordance with the policies and practices presently followed by the Company or as may be established by the Board from time to time for the Company’s senior executive officers) in performing services under this Agreement, provided that the Employee properly accounts for such expenses in accordance with the Company’s policies as in effect from time to time. Each reimbursement shall be paid within 30 days after it has been properly submitted to the Company by the Employee in accordance with all applicable policies, but in no event later than the end of the calendar year following the calendar year in which any such reimbursable expense was incurred.

The Company shall not be obligated to pay any such reimbursement amount for which the Employee fails to submit an invoice or other documented reimbursement request at least ten business days before the end of the calendar year next following the calendar year in which the expense was incurred. Business related expenses shall be reimbursable only to the extent they were incurred during the Employment Term, but in no event shall the time period extend beyond the later of the lifetime of the Employee or, if longer, 20 years. The amount of such reimbursements that the Company is obligated to pay in any given calendar year shall not affect the amount the Company is obligated to pay in any other calendar year. In addition, the Employee may not liquidate or exchange the right to reimbursement of such expenses for any other benefits.

4.2Paid Time Off. The Employee shall be entitled to paid time off in accordance with the Company’s policy as then in effect (prorated for any calendar year during which the Employee is employed with the Company for less than the entire year, based on the number of days that the Employee is employed with the Company during such calendar year); the Company’s policy in effect as of the Effective Date would provide the Employee with 200 hours of paid time off per calendar year.

4.3Other Employee Benefits. In addition to the foregoing, during the Employment Term, the Employee will be entitled to participate in and to receive benefits as a senior executive under all of the Company’s employee benefit plans, programs and arrangements available to senior executives, subject to the eligibility criteria and other terms and conditions thereof, as such plans, programs and arrangements may be duly amended, terminated, approved or adopted by the Company from time to time.

Termination of Employment

.

5.1Death. The Employee’s employment under this Agreement will terminate upon the Employee’s death.

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5.2Termination by the Company.

(a)Terminable at Will. The Company may terminate the Employee’s employment under this Agreement at any time with or without Cause (as defined below).

(b)Definition of Cause. For purposes of this Agreement, “Cause” means any of the Employee’s: (1) conviction of a felony, or plea of guilty or nolo contendere to, any felony or any crime of moral turpitude; (2) repeated intoxication by alcohol or drugs during the performance of the Employee’s duties; (3) embezzlement or other willful and intentional misuse of any of the funds of the Company or its direct or indirect subsidiaries, (4) commission of a demonstrable act of fraud; (5) willful and material misrepresentation or concealment on any written reports submitted to the Company or its direct or indirect subsidiaries; (6) material breach of this Agreement; (7) failure to follow or comply with the reasonable, material and lawful written directives of the Board; or (8) conduct constituting a material breach of the Company’s then-current code of conduct or other similar written policy which has been provided to the Employee.

(c)Notice and Cure Opportunity in Certain Circumstances. The Employee may be afforded a reasonable opportunity to cure any act or omission that would otherwise constitute Cause hereunder according to the following terms: The Board shall give the Employee written notice stating with reasonable specificity the nature of the circumstances determined by the Board in its reasonable and good faith judgment to constitute Cause. If, in the reasonable and good faith judgment of the Board, the alleged breach is reasonably susceptible to cure, the Employee will have 15 days from the Employee’s receipt of such notice to effect the cure of such circumstances or such breach to the reasonable and good faith satisfaction of the Board. The Board will state whether the Employee will have such an opportunity to cure in the initial notice of Cause referred to above. Prior to a termination for Cause, in those instances where the initial notice of Cause states that the Employee will have an opportunity to cure, the Company shall provide an opportunity for the Employee to be heard by the Board or a Board committee designated by the Board to hear the Employee. The decision as to whether the Employee has satisfactorily cured the alleged breach shall be made at such meeting. If, in the reasonable and good faith judgment of the Board, the alleged breach is not reasonably susceptible to cure, or such circumstances or breach have not been satisfactorily cured within such 15 day cure period, such breach will thereupon constitute Cause hereunder.

5.3Termination by the Employee.

(a)Terminable at Will. The Employee may terminate the Employee’s employment under this Agreement at any time with or without Good Reason (as defined below).

(b)Notice and Cure Opportunity. If such termination is for Good Reason, the Employee will give the Company written notice, which will identify with reasonable specificity the grounds for the Employee’s resignation and provide the Company with 30 days from the day such notice is given to cure the alleged grounds for resignation contained in the notice. A termination will not be for Good Reason if such notice is given by the Employee to the Company more than 45 days after the first occurrence of the event that the Employee alleges is Good Reason for the Employee’s termination hereunder. The Employee must actually terminate Employee’s employment within 30 days following the expiration of the Company’s 30-day cure period.

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Otherwise, any claim of such circumstances constituting “Good Reason” shall be deemed irrevocably waived by the Employee.

(c)Definition of Good Reason. For purposes of this Agreement, “GoodReason” will mean any of the following to which the Employee will not consent in writing: (i) a relocation of the Employee’s principal work location to a location in excess of 40 miles from its then current location; (ii) a reduction in the Employee’s then current Base Salary or Target Bonus, or both; (iii) a material breach of any provision of this Agreement by the Company; or (iv) any material reduction in the Employee’s title, authority, duties, responsibilities or reporting relationship from those in effect as of the Effective Date, except to the extent such reduction occurs in connection with the Employee’s termination of employment for Cause or due to the Employee’s death or Disability.

5.4Notice of Termination. Any termination of the Employee’s employment by the Company or by the Employee during the Employment Term (other than termination pursuant to Section 5.1) will be communicated by written Notice of Termination to the other Party hereto in accordance with Section 8.7. For purposes of this Agreement, a “Notice of Termination” means a written notice that (a) indicates the specific termination provision in this Agreement relied upon, (b) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated, and (c) if the Termination Date is other than the date of receipt of such notice, specifies the Termination Date (which Termination Date will be not more than 30 days after the giving of such notice).

5.5Disability. If the Company determines in good faith that the Disability (as defined herein) of the Employee has occurred during the Employment Term, it may, without breaching this Agreement, give to the Employee written notice in accordance with Section 5.4 of its intention to terminate the Employee’s employment. In such event, the Employee’s employment with the Company will terminate effective on the 30th day after receipt of such notice by the Employee, provided that, within 30 days after such receipt, the Employee has not returned to full-time performance of the Employee’s duties hereunder.

“Disability” means the earlier of (a) written determination by a physician selected by the Company and reasonably agreed to by the Employee that the Employee has been unable to perform substantially the Employee’s usual and customary duties under this Agreement for a period of at least 120 consecutive days or a non-consecutive period of 180 days during any 12-month period as a result of incapacity due to mental or physical illness or disease; and (b) “disability” as such term is defined in the Company’s applicable long-term disability insurance plan. At any time and from time to time, upon reasonable request therefor by the Company, the Employee will submit to reasonable medical examination for the purpose of determining the existence, nature and extent of any such disability. Any physician selected by Company shall be Board Certified in the appropriate field and shall have no actual or potential conflict of interest.

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Compensation of the Employee Upon Termination

. Subject to the provisions of Section 6.9, the Employee shall be entitled to receive the amount specified upon the termination events designated below:

6.1Death. If the Employee’s employment under this Agreement is terminated by reason of the Employee’s death, the Company shall pay to the person or persons designated by the Employee for that purpose in a notice filed with the Company, or, if no such person has been so designated, to the Employee’s estate, the following:

(a)an amount equal to the Employee’s accrued but unpaid then current Base Salary through the Termination Date, payable in a lump sum within 30 days following the Termination Date; plus

(b)if the Termination Date occurs after the end of the calendar year but prior to the date on which annual bonuses are paid, an amount equal to the Annual Bonus that the Employee would have received (if any) had Employee been employed on the payment date (the “ActualFull Year Bonus Amount”), payable at the same time annual bonuses for such year are paid to actively-employed senior executives of the Company; plus

(c)a pro-rata portion of the Employee’s Annual Bonus for the calendar year in which the Employee’s Termination Date occurs, based on actual results for such year (determined by multiplying the amount of such Annual Bonus which would be due for the full calendar year by a fraction, (i) the numerator of which is the number of days during the calendar year that the Employee is employed by the Company and (ii) the denominator of which is three hundred sixty-five (365)) (the “Actual Pro Rata Bonus Amount”), if any, payable at the same time annual bonuses for such year are paid to actively-employed senior executives of the Company; plus

(d)any other amounts that may be reimbursable by the Company to the Employee as expressly provided under this Agreement, payable in a lump sum within 30 days following the Termination Date.

The Employee’s entitlement to the amounts set forth in Section 6.1(b) and Section 6.1(c) is subject to the provisions of Section 6.5.

Thereafter, the Company will have no further obligation to the Employee under this Agreement, other than for payment of any amounts accrued and vested under any employee benefit plans or programs of the Company and any payments or benefits required to be made or provided under applicable law.

6.2Disability. In the event of the Employee’s termination by reason of Disability pursuant to Section 5.5, the Employee will continue to receive the Employee’s Base Salary in effect immediately prior to the Termination Date and participate in applicable employee benefit plans or programs of the Company through the Termination Date, subject to offset dollar-for-dollar by the amount of any disability income payments provided to the Employee under any Company disability policy or program that is maintained by the Company. The Company also shall pay to the Employee the amounts set forth in Section 6.1(a) through Section 6.1(d), at the times and subject to the conditions set forth in Section 6.1. Thereafter, the Company will have no further obligation to the Employee under this Agreement, other than for payment of any amounts accrued

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and vested under any employee benefit plans or programs of the Company and any payments or benefits required to be made or provided under applicable law.

6.3By the Company for Cause or by the Employee Without Good Reason.

(a)Termination by Company For Cause. If the Employee’s employment is terminated by the Company for Cause, the Employee will receive (i) the Employee’s accrued but unpaid then current Base Salary through the Termination Date and (ii) any other amounts that may be reimbursable by the Company to the Employee as expressly provided under this Agreement, in each case, payable in a lump sum within 30 days following the Termination Date. Thereafter, the Company will have no further obligation to the Employee under this Agreement, other than for payment of any amounts accrued and vested under any employee benefit plans or programs of the Company, and any payments or benefits required to be made or provided under applicable law. No bonus will be paid to the Employee for a termination of the Employee’s employment for Cause.

(b)Termination by Employee Without Good Reason. If the Employee’s employment is terminated by the Employee without Good Reason, the Employee will receive (i) the Employee’s accrued but unpaid then current Base Salary through the Termination Date and (ii) any other amounts that may be reimbursable by the Company to the Employee as expressly provided under this Agreement, in each case, payable in a lump sum within 30 days following the Termination Date. Thereafter, the Company will have no further obligation to the Employee under this Agreement, other than for payment of any amounts accrued and vested under any employee benefit plans or programs of the Company, and any payments or benefits required to be made or provided under applicable law. No bonus will be paid to the Employee for a termination of the Employee’s employment without Good Reason.

6.4By the Employee for Good Reason or by the Company Without Cause. Subject to the provisions of Section 6.5, if the Company terminates the Employee’s employment without Cause, or the Employee terminates Employee’s employment for Good Reason, then the Employee will be entitled to the following (with the amounts payable under clauses (b), (c), (e) and (f) below, collectively, the “Severance Benefits”):

(a)an amount equal to the Employee’s accrued but unpaid then current Base Salary through the Termination Date, payable in a lump sum within 30 days following the Termination Date; plus

(b)if the Termination Date occurs after the end of the calendar year but prior to the date on which annual bonuses are paid, the Actual Full Year Bonus Amount, payable at the same time annual bonuses for such year are paid to actively-employed senior executives of the Company; plus

(c)the Actual Pro Rata Bonus Amount, if any, payable at the same time annual bonuses for such year are paid to actively-employed senior executives of the Company; plus

(d)any other amounts that may be reimbursable by the Company to the Employee as expressly provided under this Agreement; plus

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(e)(i) if the Employee’s termination occurs on or prior to December 11, 2019, an amount equal to the Employee’s monthly Base Salary rate as in effect on the day before the Termination Date (but not as an employee), and (ii) if the Employee’s termination occurs after December 11, 2019, an amount equal to 200% of the Employee’s monthly Base Salary rate as in effect on the day before the Termination Date, in each case, payable in accordance with the Company’s regularly scheduled payroll practices for a period of 12 months following the Termination Date; provided that to the extent the payment of any amount constitutes “nonqualified deferred compensation” for purposes of Code Section 409A, any such payment scheduled to occur during the first 60 days following the Termination Date shall not be paid until the first regularly scheduled pay period following the 60^th day after the Termination Date and shall include payment of any amount that was otherwise scheduled to be paid prior thereto; plus

(f)subject to the Employee’s (i) timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and (B) continued copayment of premiums at the same level and cost to the Employee as if the Employee were a senior executive of the Company (excluding, for purposes of calculating cost, an employee’s ability to pay premiums with pre-tax dollars), continued participation in the Company’s group health plan (to the extent permitted under applicable law and the terms of such plan) which covers the Employee (and Employee’s spouse and eligible dependents, if applicable) for a period of 12 months, provided that the Employee is eligible and remains eligible for COBRA coverage; provided, further, that the Company may modify the continuation coverage contemplated by this Section 6.4(f) to the extent reasonably necessary to avoid the imposition of any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and/or the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable); and provided, further, that in the event that the Employee obtains other employment that offers group health plan coverage, such continuation of coverage by the Company under this Section 6.4(f) shall cease as of the end of the month in which the Employee obtains such other employer-provided, group health plan coverage.

6.5Conditions to Receipt of Certain Post-Termination Payments and Benefits.

(a)Release. As a condition to receiving the Actual Full Year Bonus Amount, the Actual Pro Rata Bonus Amount and/or any Severance Benefits to which the Employee may otherwise be entitled under Section 6.1, Section 6.2 or Section 6.4, the Employee must execute and not revoke a general release of claims, which will include an affirmation of the restrictive covenants set forth in Section 7, in form and substance satisfactory to the Company (the “Release”). The Company will provide the Release to the Employee for signature within ten days after the Termination Date. If the Company has provided the Release to the Employee for signature within ten days after the Termination Date, and if the Release is not executed and non-revocable within 60 days after the Termination Date and prior to the date on which such payment and/or benefits are to be first paid or provided to the Employee, the Employee will not be entitled to the Actual Full Year Bonus Amount, the Actual Pro Rata Bonus Amount and/or any Severance Benefits, as the case may be, and the Company will have no further obligations with respect to the provision of those payments and/or benefits except as may be required by law. If the Release consideration period spans two calendar years, no payments and/or benefits subject to the Release

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will be paid or provided until the later of (i) the date on which the Release becomes effective and non-revocable and (ii) January 2^nd of the second calendar year.

(b)Limitation on Benefits. If, following a termination of employment that gives the Employee a right to the payment of the Actual Full Year Bonus Amount, the Actual Pro Rata Bonus Amount and/or any Severance Benefits to which the Employee may otherwise be entitled under Section 6.1, Section 6.2 or Section 6.4, the Employee violates any of the covenants in Section 7 or as otherwise set forth in the Release, the Employee will have no further right or claim to the Actual Full Year Bonus Amount, the Target Pro Rata Bonus Amount and/or any Severance Benefits to which the Employee may otherwise be entitled under Section 6.1, Section 6.2 or Section 6.4 from and after the date on which the Employee engages in such activities, and the Company will have no further obligations with respect to such payments or benefits, and the covenants in Section 7 will nevertheless continue in full force and effect.

6.6Certain Amounts Not Includable for Employee Benefits Purposes. Except to the extent the terms of any applicable benefit plan, policy or program provide otherwise, any benefit programs of the Company that take into account the Employee’s income will exclude the Actual Full Year Bonus Amount, the Actual Pro Rata Bonus Amount and/or any Severance Benefits to which the Employee may otherwise be entitled under Section 6.1, Section 6.2 or Section 6.4.

6.7Exclusive Severance Benefits. The Actual Full Year Bonus Amount, the Actual Pro Rata Bonus Amount and/or any Severance Benefits to which the Employee may otherwise be entitled under Section 6.1, Section 6.2 or Section 6.4, if they become payable under the terms of this Agreement, will be in lieu of any other severance or similar benefits that would otherwise be payable under any other agreement, plan, program or policy of the Company, excluding, for this purpose, any post-termination treatment of equity incentive awards provided under the terms of the governing award agreements.

6.8Code Section 280G; Code Section 409A. Notwithstanding anything in this Agreement to the contrary:

(a)If any of the payments or benefits received or to be received by the Employee (including, without limitation, any payment or benefits received in connection with a “change of control” or the Employee’s termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the (“280G Payments”) constitute “parachute payments” within the meaning of Section 280G of the Code and would, but for this Section 6.8(a), be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then prior to making the 280G Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Employee of the 280G Payments after payment of the Excise Tax to (ii) the Net Benefit to the Employee if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under clause (i) above is less than the amount under clause (ii) above will the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise Tax. “Net Benefit” shall mean the present value of the 280G Payments net of all federal, state, local, foreign income, employment and excise taxes. Any reduction made pursuant to this Section 6.8(a) shall be made in a manner determined by the Company that is consistent with the requirements of Code Section 409A and

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that maximizes the Employee’s economic position and after-tax income; for the avoidance of doubt, the Employee shall not have any discretion in determining the manner in which the payments and benefits are reduced.

(b)In the event that any benefits payable or otherwise provided under this Agreement would be deemed to constitute non-qualified deferred compensation subject to Code Section 409A, the Company will have the discretion to adjust the terms of such payment or benefit (but not the amount or value thereof) to the minimum extent reasonably necessary to comply with the requirements of Code Section 409A to avoid the imposition of any excise tax or other penalty with respect to such payment or benefit under Code Section 409A.

6.9Timing of Payments by the Company. Notwithstanding anything in this Agreement to the contrary, in the event that the Employee is a “specified employee” (as determined under Code Section 409A) at the time of the separation from service triggering the payment or provision of benefits, any payment or benefit under this Agreement which is determined to provide for a deferral of compensation pursuant to Code Section 409A shall not commence being paid or made available to the Employee until after six months from the Termination Date that constitutes a “separation from service” within the meaning of Code Section 409A or such earlier date as may be permitted under Code Section 409A.

Restrictive Covenants

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7.1Confidential Information. During the Employment Term and thereafter, the Employee shall keep secret and retain in strictest confidence, and shall not use for the benefit of himself or others, any confidential matters or trade secrets of, or confidential and competitively valuable information concerning, the Company and its direct or indirect subsidiaries (collectively, the “Company Group”), including, without limitation, information concerning their organization and operations, business and affairs, formulae, manufacturing processes, proprietary information, technical data, “know-how”, customer lists, details of client or consultant contracts, vendor and purchasing arrangements, terms and discounts, pricing methods and policies, financial information, operational methods, marketing plans or strategies, business acquisition plans, new personnel acquisition plans, technical processes, projects, financing/financial projections, budget information and procedures, marketing plans or strategies, and research products. The confidentiality obligations set forth in this Section 7.1 shall not apply to any information that becomes part of the public domain other than through the Employee’s disclosure in violation of the terms hereof. Nothing herein shall be construed as prohibiting the Employee from using or disclosing such confidential information as is necessary and has been authorized in Employee’s proper performance of services for the Company Group.

(a)SEC Provisions. The Employee understands that nothing contained in this Agreement limits the Employee’s ability to file a charge or complaint with the Securities and Exchange Commission (“SEC”). The Employee further understands that this Agreement does not limit the Employee’s ability to communicate with the SEC or otherwise participate in any investigation or proceeding that may be conducted by the SEC, including providing documents or other information, without notice to the Company. This Agreement does not limit the Employee’s right to receive an award for information provided to the SEC. This Section 7.1(a) applies only for the period of time that the Company is subject to the Dodd-Frank Act.

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(b)Trade Secrets. The parties specifically acknowledge that 18 U.S.C. § 1833(b) provides: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.” Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Accordingly, notwithstanding anything to the contrary in the foregoing, the Parties have the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. If the Employee files a lawsuit for retaliation against the Company for reporting a suspected violation of law, the Employee may disclose the Company’s trade secrets to the Employee’s attorney and use the trade secret information in the court proceeding, if the Employee first files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

7.2No Interference. Notwithstanding any other provision of this Agreement, (a) the Employee may disclose confidential information (as described in Section 7.1 above) when required to do so by a court of competent jurisdiction, by any governmental agency having authority over the Employee or the business of the Company or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order the Employee to divulge, disclose or make accessible such information, in each case, subject to the Employee’s obligations to notify the Company and first obtain a protective order, to the extent permitted by applicable law; and (b) nothing in this Agreement is intended to interfere with the Employee’s right to (i) report possible violations of state or federal law or regulation to any governmental or law enforcement agency or entity; (ii) make other disclosures that are protected under the whistleblower provisions of state or federal law or regulation (including the right to receive an award for information provided to any such government agencies); (iii) file a claim or charge any governmental agency or entity; or (iv) testify, assist or participate in an investigation, hearing, or proceeding conducted by any governmental or law enforcement agency or entity, or any court. For purposes of clarity, in making or initiating any such reports or disclosures or engaging in any of the conduct outlined in subsection (b) above, the Employee may disclose confidential information to the extent necessary to such governmental or law enforcement agency or entity or such court, need not seek prior authorization from the Company and is not required to notify the Company of any such reports, disclosures or conduct.

7.3Return of Property. The Employee agrees to deliver promptly to the Company, upon termination of the Employee’s employment hereunder, or at any other time when the Company so requests, all documents relating to the business of the Company Group; provided, however, that the Employee will be permitted to retain copies of any documents or materials of a personal nature or otherwise related to the Employee’s rights under this Agreement, copies of this Agreement and any attendant or ancillary documents specifically including any documents referenced in this Agreement and copies of any documents related to the Employee’s long-term incentive awards and other compensation.

7.4Non-Competition. The Employee acknowledges that the Employee (a) will perform services of a unique nature for the Company Group that are irreplaceable, and that the Employee’s

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performance of such services to a competing business will result in irreparable harm to the Company Group, (b) will have access to Confidential Information which, if disclosed, would unfairly and inappropriately assist in competition against the Company Group, (c) would inevitably use or disclose such Confidential Information in the course of the Employee’s employment by a competitor, (d) will have access to the customers of the Company Group, (e) will receive specialized training from the Company Group, and (f) will generate goodwill for the Company Group in the course of the Employee’s employment. Accordingly, during the Employment Term and for a period of 12 months immediately thereafter, the Employee agrees that the Employee will not, directly or indirectly, other than through the Company, engage or participate (or prepare to engage or participate), in any manner, whether directly or indirectly through an employee, employer, consultant, agent, principal, partner, more than 1% shareholder, officer, director, licensor, lender, lessor or in any other individual or representative capacity, in any business or activity which is in competition with the business of the Company Group in the leasing, acquiring, exploring or producing hydrocarbons and related products within the boundaries of, or within a ten-mile radius of the boundaries of, any mineral property interest of any member of the Company Group (including, without limitation, a mineral lease, overriding royalty interest, production payment, net profits interest, mineral fee interest or option or right to acquire any of the foregoing, or an area of mutual interest as designated pursuant to contractual agreements between any member of the Company Group and any third party), or any other property on which any of the Company Group has an option, right, license or authority to conduct or direct exploratory activities, such as three-dimensional seismic acquisition or other seismic, geophysical and geochemical activities (but not including any preliminary geological mapping), provided that the foregoing will not restrict the Employee from obtaining post-termination employment with an entity that only has de minimis operations in the restricted territory (as determined by the Board in good faith); provided that, this Section 7.4 will not preclude the Employee from making passive investments in securities of oil and gas companies which are registered on a national stock exchange, if (i) the aggregate amount owned by the Employee and Employee’s spouse and children, if any, does not exceed 1% of such company’s outstanding securities, and (ii) the aggregate amount invested in such investments by the Employee and Employee’s spouse and children does not exceed $1,000,000.

7.5Non-Solicitation; Non-Interference.

(a)During the Employment Term and for a period of 12 months immediately thereafter, the Employee agrees that Employee shall not, except in the furtherance of the Employee’s duties hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, induce or attempt to induce any customer, supplier, agent, intermediary or other business relation of the Company Group to reduce or cease doing business with the Company Group, or interfere with the relationship between any such customer, supplier, agent, intermediary or business relation and the Company Group (including making any negative statements or communications concerning the Company Group); provided that nothing contained in this Section 7.5(a) will prohibit public advertising or general solicitations that are not specifically directed to customers, suppliers, licensees or other business relations of the Company Group.

(b)During the Employment Term and for a period of 12 months immediately thereafter, the Employee agrees that Employee shall not, except in the furtherance of the

12

Employee’s duties hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, solicit, aid or induce any employee, representative or agent of the Company Group to leave such employment or retention or to accept employment with or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company Group or hire or retain any such employee, representative or agent, or take any action to materially assist or aid any other person, firm, corporation or other entity in identifying, hiring or soliciting any such employee, representative or agent. An employee, representative or agent shall be deemed covered by this Section 7.5(b) while so employed or retained and for a period of six months thereafter.

7.6Non-Disparagement. The Employee agrees not to make any negative, disparaging, detrimental or derogatory remarks or public statements (written, oral, telephonic, electronic, or by any other method) about the Company or any other member of the Company Group or their respective successors and assigns or any of their respective officers, directors, employees, shareholders, agents or products. The Company agrees not to make any negative, disparaging, detrimental or derogatory remarks or public statements (written, oral, telephonic, electronic or by any other method) about the Employee. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings).

7.7Assignment of Developments.

(a)The Employee acknowledges and agrees that all ideas, methods, inventions, discoveries, improvements, work products, developments, software, know-how, processes, techniques, works of authorship and other work product, whether patentable or unpatentable, (i) that are reduced to practice, created, invented, designed, developed, contributed to, or improved with the use of any Company Group resources and/or within the scope of the Employee’s work with the Company Group or that relate to the business, operations or actual or demonstrably anticipated research or development of the Company Group, and that are made or conceived by the Employee, solely or jointly with others, during the Employment Term, or (ii) suggested by any work that the Employee performs in connection with the Company Group, either while performing the Employee’s duties with the Company Group or on the Employee’s own time, but only insofar as the Inventions are related to the Employee’s work as an employee or other service provider to the Company Group, shall belong exclusively to the Company (or its designee), whether or not patent or other applications for intellectual property protection are filed thereon (the “Inventions”). The Employee will keep full and complete written records (the “Records”), in the manner prescribed by the Company, of all Inventions, and will promptly disclose all Inventions completely and in writing to the Company. The Records shall be the sole and exclusive property of the Company, and the Employee will surrender them upon the termination of the Employment Term, or upon the Company’s earlier request. The Employee irrevocably conveys, transfers and assigns to the Company the Inventions and all patents or other intellectual property rights that may issue thereon in any and all countries, whether during or subsequent to the Employment Term, together with the right to file, in the Employee’s name or in the name of the Company (or its designee), applications for patents and equivalent rights (the “Applications”). The Employee will, at any time during and subsequent to the Employment Term, make such applications, sign such papers, take all rightful oaths, and perform all other acts as may be requested from time to time by the Company

13

to perfect, record, enforce, protect, patent or register the Company’s rights in the Inventions, all without additional compensation to the Employee from the Company. The Employee will also execute assignments to the Company (or its designee) of the Applications, and give the Company and its attorneys all reasonable assistance (including the giving of testimony) to obtain the Inventions for the Company’s benefit, all without additional compensation to the Employee from the Company, but entirely at the Company’s expense.

(b)In addition, the Inventions will be deemed Work for Hire, as such term is defined under the copyright laws of the United States, on behalf of the Company, and the Employee agrees that the Company will be the sole owner of the Inventions, and all underlying rights therein, in all media now known or hereinafter devised, throughout the universe and in perpetuity without any further obligations to the Employee. If the Inventions, or any portion thereof, are deemed not to be Work for Hire, or the rights in such Inventions do not otherwise automatically vest in the Company, the Employee hereby irrevocably conveys, transfers and assigns to the Company, all rights, in all media now known or hereinafter devised, throughout the universe and in perpetuity, in and to the Inventions, including, without limitation, all of the Employee’s right, title and interest in the copyrights (and all renewals, revivals and extensions thereof) to the Inventions, including, without limitation, all rights of any kind or any nature now or hereafter recognized, including, without limitation, the unrestricted right to make modifications, adaptations and revisions to the Inventions, to exploit and allow others to exploit the Inventions and all rights to sue at law or in equity for any infringement, or other unauthorized use or conduct in derogation of the Inventions, known or unknown, prior to the date hereof, including, without limitation, the right to receive all proceeds and damages therefrom. In addition, the Employee hereby waives any so-called “moral rights” with respect to the Inventions. To the extent that the Employee has any rights in the results and proceeds of the Employee’s service to the Company that cannot be assigned in the manner described herein, the Employee agrees to unconditionally waive the enforcement of such rights. The Employee hereby waives any and all currently existing and future monetary rights in and to the Inventions and all patents and other registrations for intellectual property that may issue thereon, including, without limitation, any rights that would otherwise accrue to the Employee’s benefit by virtue of the Employee being an employee of or other service provider to the Company.

7.8Injunctive Relief. The Employee acknowledges that a breach of any of the covenants contained in this Section 7 may result in material, irreparable injury to the Company Group for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely, and that, in the event of such a breach or threat of breach, the Company or any other member of the Company Group will be entitled to obtain a temporary restraining order and/or a preliminary or permanent injunction restraining the Employee from engaging in activities prohibited by this Section 7 or such other relief as may be required to specifically enforce any of the covenants in this Section 7.

7.9Adjustment of Covenants. The Parties consider the covenants and restrictions contained in this Section 7 to be reasonable. However, if and when any such covenant or restriction is found to be void or unenforceable and would have been valid had some part of it been deleted or had its scope of application been modified, such covenant or restriction will be deemed to have been applied with such modification as would be necessary and consistent with the intent of the Parties to have made it valid, enforceable and effective.

14

7.10Forfeiture Provision.

(a)Detrimental Activities. If the Employee engages in any activity that violates any covenant or restriction contained in this Section 7, in addition to any other remedy the Company may have at law or in equity, (i) the Employee will be entitled to no further payments or benefits from the Company under this Agreement or otherwise, except for any payments or benefits required to be made or provided under applicable law; (ii) all forms of equity compensation held by or credited to the Employee will terminate effective as of the date on which the Employee engages in that activity, unless terminated sooner by operation of another term or condition of this Agreement or other applicable plans and agreements; and (iii) any exercise, payment or delivery pursuant to any equity compensation award that occurred within one year prior to the date on which the Employee engages in that activity may be rescinded within one year after the first date that any member of the Board first became aware that the Employee engaged in that activity. In the event of any such rescission, the Employee will pay to the Company the amount of any gain realized or payment received as a result of the rescinded exercise, payment or delivery (after deducting the Employee’s actual income tax liability incurred with respect to such gain or payment), in such manner and on such terms and condition as may be required. Notwithstanding any provision of this Agreement to the contrary, if the Employee disputes whether Employee has violated any covenant or restriction contained in Section 7, and such dispute has been adjudicated to a final decision pursuant to Section 8.5 in the Employee’s favor, the Company will pay to the Employee all amounts withheld or clawed back pursuant to this Section 7.11 to the extent ordered by a court of competent jurisdiction; provided that legal action in this respect is filed by the Employee within 60 days after being notified of the Company’s decision affecting the Employee under this Section 7.11.

(b)Right of Setoff. The Employee consents to a deduction from any amounts the Company owes the Employee from time to time (including amounts owed as wages or other compensation, fringe benefits, or vacation pay, as well as any other amounts owed to the Employee by the Company), to the extent of the amounts the Employee owes the Company under Section 7.11(a) (above). Whether or not the Company elects to make any setoff in whole or in part, if the Company does not recover by means of setoff the full amount the Employee owes, calculated as set forth above, the Employee agrees to pay immediately the unpaid balance to the Company.

Miscellaneous

.

8.1Assignment; Successors; Binding Agreement. This Agreement may not be assigned by either Party, whether by operation of law or otherwise, without the prior written consent of the other Party, except that any right, title or interest of the Company arising out of this Agreement may be assigned to any corporation or entity controlling, controlled by, or under common control with the Company, or succeeding to the business and substantially all of the assets of the Company or any affiliates for which the Employee performs substantial services. Subject to the foregoing, this Agreement will be binding upon and will inure to the benefit of the Parties and their respective heirs, legatees, devisees, personal representatives, successors and assigns. The Company shall obtain from any successor or other person or entity acquiring a majority of the Company’s assets or equity securities a written agreement to perform all terms of this Agreement, and any failure by the Company to obtain such written agreement shall be a material breach of this Agreement.

15

8.2Modification and Waiver. Except as otherwise provided below, no provision of this Agreement may be modified, waived, or discharged unless such waiver, modification or discharge is duly approved by the Board and is agreed to in writing by the Employee and such officer(s) as may be specifically authorized by the Board to effect it. No waiver by any Party of any breach by any other Party of, or of compliance with, any term or condition of this Agreement to be performed by any other Party, at any time, will constitute a waiver of similar or dissimilar terms or conditions at that time or at any prior or subsequent time.

8.3Entire Agreement. This Agreement, together with any documents specifically referenced in this Agreement, embodies the entire understanding of the Parties hereto, and, upon the Effective Date, will supersede all other oral or written agreements or understandings between them regarding the subject matter hereof including, without limitation, the Prior Agreement; provided, however, that if there is a conflict between any of the terms in this Agreement and the terms in any award agreement between the Company and the Employee pursuant to any long-term incentive plan or otherwise, the terms of the award agreement shall govern. No agreement or representation, oral or otherwise, express or implied, with respect to the subject matter of this Agreement, has been made by either Party which is not set forth expressly in this Agreement or the other documents referenced in this Section 8.3.

8.4Governing Law. The validity, interpretation, construction and performance of this Agreement will be governed by the laws of the State of Texas other than the conflict of laws provision thereof.

8.5Consent to Jurisdiction; Service of Process; Waiver of Right to Jury Trial.

(a)Disputes. In the event of any dispute, controversy or claim between the Company and the Employee arising out of or relating to the interpretation, application or enforcement of the provisions of this Agreement, the Company and the Employee agree and consent to the personal jurisdiction of the state and local courts of Harris County, Texas and/or the United States District Court for the Southern District of Texas, Houston Division for resolution of the dispute, controversy or claim, and that those courts, and only those courts, shall have any jurisdiction to determine any dispute, controversy or claim related to, arising under or in connection with this Agreement. The Company and the Employee also agree that those courts are convenient forums for the parties to any such dispute, controversy or claim and for any potential witnesses and that process issued out of any such court or in accordance with the rules of practice of that court may be served by mail or other forms of substituted service to the Company at the address of its principal executive offices and to the Employee at the Employee’s last known address as reflected in the Company’s records.

(b)Waiver of Right to Jury Trial. THE COMPANY AND THE EMPLOYEE HEREBY VOLUNTARILY, KNOWINGLY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY TO ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT, AS WELL AS TO ALL CLAIMS ARISING OUT OF THE EMPLOYEE’S EMPLOYMENT WITH THE COMPANY OR TERMINATION THEREFROM.

8.6Withholding of Taxes. The Company will withhold from any amounts payable under the Agreement all federal, state, local or other taxes as legally will be required to be withheld.

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8.7Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and facsimile numbers set forth below (or to such other addresses and facsimile numbers as a Party may designate by notice to the other parties).

To the Company:

AMPLIFY ENERGY CORP.

Attn: General Counsel

500 Dallas Street

Suite 1700

Houston, TX 77002

Email: HR@amplifyenergy.com

To the Employee:

At the address reflected in the Company’s written records.

Addresses may be changed by written notice sent to the other Party at the last recorded address of that Party.

8.8Severability. The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in full force and effect.

8.9Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same instrument.

8.10Headings. The headings used in this Agreement are for convenience only, do not constitute a part of the Agreement, and will not be deemed to limit, characterize, or affect in any way the provisions of the Agreement, and all provisions of the Agreement will be construed as if no headings had been used in the Agreement.

8.11Construction. As used in this Agreement, unless the context otherwise requires: (a) the terms defined herein will have the meanings set forth herein for all purposes; (b) references to “Section” are to a section hereof; (c) “include,” “includes” and “including” are deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of like import; (d) “writing,” “written” and comparable terms refer to printing, typing, lithography and other means of reproducing words in a visible form; (e) “hereof,” “herein,” “hereunder” and comparable terms refer to the entirety of this Agreement and not to any particular section or other subdivision hereof or attachment hereto; (f) references to any gender include references to all genders; and (g) references to any agreement or other instrument or statute or regulation are referred to as amended or supplemented from time to time (and, in the case of a statute or regulation, to any successor provision).

17

8.12Capacity; No Conflicts. The Employee represents and warrants to the Company that: (a) the Employee has full power, authority and capacity to execute and deliver this Agreement, and to perform the Employee’s obligations hereunder, (b) such execution, delivery and performance will not (and with the giving of notice or lapse of time, or both, would not) result in the breach of any agreement or other obligation to which the Employee is a party or is otherwise bound, and (c) this Agreement is the Employee’s valid and binding obligation, enforceable in accordance with its terms.

[Signature page follows.]

18

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date first written above.

AMPLIFY ENERGY CORP.

By:

Name:

Title:

EMPLOYEE

Tony Lopez

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Martyn Willsher, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Amplify Energy Corp. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2020	/s/ Martyn Willsher
	Martyn Willsher
	Interim Chief Executive Officer, Senior Vice President and Chief Financial Officer
	Amplify Energy Corp.

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Martyn Willsher, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Amplify Energy Corp. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2020	/s/ Martyn Willsher
	Martyn Willsher
	Interim Chief Executive Office, Senior Vice President and Chief Financial Officer
	Amplify Energy Corp.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Amplify Energy Corp. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Martyn Willsher, Interim Chief Executive Officer, Senior Vice President and Chief Financial Officer of Amplify Energy Corp., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to their knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 6, 2020	/s/ Martyn Willsher
	Martyn Willsher
	Interim Chief Executive Officer, Senior Vice President and Chief Financial Officer
	Amplify Energy Corp.

The foregoing certifications are being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, are not being filed as part of the Report for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Equity (Deficit) - Summary of Changes in Number of Outstanding Common Units and Shares of Common Stock (Detail)	3 Months Ended
	Mar. 31, 2020 shares
Summary Of Changes In Number Of Outstanding Units Or Shares [Line Items]
Beginning balance	37,566,540
Ending balance	37,568,164
Common Stock [Member]
Summary Of Changes In Number Of Outstanding Units Or Shares [Line Items]
Beginning balance	37,566,540
Issuance of common stock	0
Restricted stock units vested	2,411
Repurchase of common shares	(787)	[1]
Ending balance	37,568,164

[1] Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements.

XML

Long-Term Debt - Credit Facility - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020 USD ($)
Debt Disclosure [Abstract]
Borrowing base	$ 450,000,000
Maturity date	Nov. 02, 2023
Letters of credit outstanding	$ 0

XML

Long-Term Incentive Plans - Summary of Information Regarding Restricted Stock Unit Awards (Parenthetical) (Detail) $ / shares in Units, $ in Millions	Mar. 31, 2020 USD ($) $ / shares
TSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate grant date fair value of restricted stock units issued | $	$ 0.1
Grant Date Market Price	$ 6.61
PSUs [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate grant date fair value of restricted stock units issued | $	$ 0.1
Calculated fair value price	$ 3.66
PSUs [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Calculated fair value price	$ 2.46

XML

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Line Items]
Income tax benefit (expense)	$ 0	$ 50,000
Effective tax rate	0.00%	0.00%
Maximum [Member]
Income Tax Disclosure [Line Items]
Income tax benefit (expense)		$ 100,000

XML

Earnings per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings per Share

Note 10. Earnings per Share

The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts):

	For the Three Months Ended
	March 31,
	2020			2019
Net loss	$	(367,199	)	$	(31,477	)
Less: Net income allocated to participating restricted stockholders		—			—
Basic and diluted earnings available to common stockholders	$	(367,199	)	$	(31,477	)
Common shares/units:
Common shares outstanding — basic		37,568			22,179
Dilutive effect of potential common shares		—			—
Common shares outstanding — diluted		37,568			22,179
Net earnings per share:
Basic	$	(9.77	)	$	(1.42	)
Diluted	$	(9.77	)	$	(1.42	)
Antidilutive warrants (1)		9,154			2,174

(1) Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect.

XML

Risk Management and Derivative Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Risk Management and Derivative Instruments

Note 6. Risk Management and Derivative Instruments

Derivative instruments are utilized to manage exposure to commodity price fluctuations and achieve a more predictable cash flow in connection with natural gas and oil sales from production and borrowing related activities. These instruments limit exposure to declines in prices, but also limit the benefits that would be realized if prices increase.

Certain inherent business risks are associated with commodity derivative contracts, including market risk and credit risk. Market risk is the risk that the price of natural gas or oil will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the counterparty to a contract. It is our policy to enter into derivative contracts, only with creditworthy counterparties, which generally are financial institutions, deemed by management as competent and competitive market makers. Some of the lenders, or certain of their affiliates, under our previous and current credit agreements are counterparties to our derivative contracts. While collateral is generally not required to be posted by counterparties, credit risk associated with derivative instruments is minimized by limiting exposure to any single counterparty and entering into derivative instruments only with creditworthy counterparties that are generally large financial institutions. Additionally, master netting agreements are used to mitigate risk of loss due to default with counterparties on derivative instruments. We have also entered into International Swaps and Derivatives Association Master Agreements (“ISDA Agreements”) with each of our counterparties. The terms of the ISDA Agreements provide us and each of our counterparties with rights of set-off upon the occurrence of defined acts of default by either us or our counterparty to a derivative, whereby the party not in default may set-off all liabilities owed to the defaulting party against all net derivative asset receivables from the defaulting party. Had all counterparties failed completely to perform according to the terms of the existing contracts, we would have had the right to offset $99.1 million against amounts outstanding under our Revolving Credit Facility at March 31, 2020, reducing our maximum credit exposure to approximately $5.7 million, all of which was with one counterparty. See Note 8 for additional information regarding our Revolving Credit Facility.

Commodity Derivatives

We may use a combination of commodity derivatives (e.g., floating-for-fixed swaps, put options, costless collars and three-way collars) to manage exposure to commodity price volatility. We recognize all derivative instruments at fair value.

Subsequent Events. In April 2020, the company monetized a portion of its 2021 crude oil hedges for total cash proceeds of approximately $18.0 million.  

We enter into natural gas derivative contracts that are indexed to NYMEX-Henry Hub. We also enter into oil derivative contracts indexed to NYMEX-WTI. Our NGL derivative contracts are primarily indexed to OPIS Mont Belvieu.

At March 31, 2020, we had the following open commodity positions:

	Remaining
	2020			2021			2022
Natural Gas Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (MMBtu)		650,000			487,500			300,000
Weighted-average fixed price	$	2.54		$	2.48		$	2.46
Collar contracts:
Two-way collars
Average monthly volume (MMBtu)		420,000			162,500			—
Weighted-average floor price	$	2.60		$	2.58		$	—
Weighted-average ceiling price	$	2.88		$	2.84		$	—
Natural Gas Basis Swaps:
PEPL basis swaps:
Average monthly volume (MMBtu)		600,000			500,000			—
Weighted-average spread	$	(0.46	)	$	(0.40	)	$	—
Crude Oil Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		209,300			116,250			30,000
Weighted-average fixed price	$	57.44		$	56.05		$	55.32
Collar contracts:
Two-way collars
Average monthly volume (Bbls)		14,300			—			—
Weighted-average floor price	$	55.00		$	—		$	—
Weighted-average ceiling price	$	62.10		$	—		$	—
Three-way collars
Average monthly volume (Bbls)		30,500			—			—
Weighted-average ceiling price	$	65.75		$	—		$	—
Weighted-average floor price	$	50.00		$	—		$	—
Weighted-average sub-floor price	$	40.00		$	—		$	—
NGL Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		65,450			22,800			—
Weighted-average fixed price	$	25.27		$	24.25		$	—

Interest Rate Swaps

Periodically, we enter into interest rate swaps to mitigate exposure to market rate fluctuations by converting variable interest rates such as those in our credit agreement to fixed interest rates. At March 31, 2020, we had the following interest rate swap open positions:

	Remaining
	2020			2021			2022
Average Monthly Notional (in thousands)	$	125,000		$	125,000		$	75,000
Weighted-average fixed rate		1.612	%		1.612	%		1.281	%
Floating rate	1 Month LIBOR			1 Month LIBOR			1 Month LIBOR

Balance Sheet Presentation

The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at March 31, 2020 and December 31, 2019. There was no cash collateral received or pledged associated with our derivative instruments since most of the counterparties, or certain of their affiliates, to our derivative contracts are lenders under our credit agreement.

		Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
		March 31,			March 31,			December 31,			December 31,
Type	Balance Sheet Location	2020			2020			2019			2019
		(In thousands)
Commodity contracts	Short-term derivative instruments	$	83,477		$	4,139		$	11,518		$	5,887
Interest rate swaps	Short-term derivative instruments		—			1,621			248			253
Gross fair value			83,477			5,760			11,766			6,140
Netting arrangements			(5,070	)		(5,070	)		(5,887	)		(5,887	)
Net recorded fair value	Short-term derivative instruments	$	78,407		$	690		$	5,879		$	253
Commodity contracts	Long-term derivative instruments	$	28,036		$	513		$	6,990		$	973
Interest rate swaps	Long-term derivative instruments		—			1,981			347			305
Gross fair value			28,036			2,494			7,337			1,278
Netting arrangements			(581	)		(581	)		(973	)		(973	)
Net recorded fair value	Long-term derivative instruments	$	27,455		$	1,913		$	6,364		$	305

(Gains) Losses on Derivatives

We do not designate derivative instruments as hedging instruments for accounting and financial reporting purposes. Accordingly, all gains and losses, including changes in the derivative instruments’ fair values, have been recorded in the accompanying Unaudited Condensed Statements of Consolidated Operations. The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands):

		For the Three Months Ended
	Statements of	March 31,
	Operations Location	2020			2019
Commodity derivative contracts	(Gain) loss on commodity derivatives	$	(107,713	)	$	32,487
Interest rate derivatives	Interest expense, net		3,616			(94	)

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Acquisitions and Divestitures - Additional Information (Detail) - $ / shares	May 05, 2019	Mar. 31, 2020	Dec. 31, 2019
Business Acquisition And Divestiture [Line Items]
Common stock, par value		$ 0.01	$ 0.01
Legacy Amplify, Midstates and Midstates Holdings, Inc. [Member]
Business Acquisition And Divestiture [Line Items]
Merger conversion ratio	0.933
Common stock, par value	$ 0.01

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Equity (Deficit) (Tables)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Summary of Changes in Common Stock Issued

The following is a summary of the changes in our common stock issued for the three months ended March 31, 2020:

	Common
	Shares
Balance, December 31, 2019		37,566,540
Issuance of common stock		—
Restricted stock units vested		2,411
Repurchase of common shares (1)		(787	)
Balance, March 31, 2020		37,568,164

(1) Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements.

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Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Current Accrued Liabilities

Current accrued liabilities consisted of the following at the dates indicated (in thousands):

	March 31,		December 31,
	2020		2019
Accrued lease operating expense	$	10,692	$	11,794
Accrued capital expenditures		6,559		5,515
Accrued general and administrative expense		2,652		3,126
Operating lease liability		2,202		1,712
Accrued ad valorem tax		1,099		520
Asset retirement obligations		623		623
Accrued interest payable		30		36
Other		43		32
Accrued liabilities	$	23,900	$	23,358

Summary of Cash and Cash Equivalents Reconciliation

The following table provides a reconciliation of cash and cash equivalents on the Unaudited Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash on the Unaudited Condensed Statements of Consolidated Cash Flows (in thousands):

	March 31,		December 31,
	2020		2019
Cash and cash equivalents	$	1,894	$	—
Restricted cash		—		325
Total cash, cash equivalents and restricted cash	$	1,894	$	325

Summary of Supplemental Cash Flows

Supplemental cash flows for the periods presented (in thousands):

	For the Three Months Ended
	March 31,
	2020			2019
Supplemental cash flows:
Cash paid for interest, net of amounts capitalized	$	3,017		$	2,325
Cash paid for reorganization items, net		186			187
Noncash investing and financing activities:
Increase (decrease) in capital expenditures in payables and accrued liabilities		(3,206	)		(2,612	)

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Organization and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

General

General

On August 6, 2019, Midstates Petroleum Company, Inc., a Delaware corporation (“Midstates”), completed its business combination (the “Merger”) with Amplify Energy Corp. (“Legacy Amplify”) in accordance with the terms of that certain Agreement and Plan of Merger, dated May 5, 2019 (the “Merger Agreement”), by and among Midstates, Legacy Amplify and Midstates Holdings, Inc., a Delaware corporation and direct, wholly owned subsidiary of Midstates (“Merger Sub”). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Legacy Amplify, with Legacy Amplify surviving the Merger as a wholly owned subsidiary of Midstates, and immediately following the Merger, Legacy Amplify merged with and into Alpha Mike Holdings LLC, a Delaware limited liability company and wholly owned subsidiary of Midstates (“LLC Sub”), with LLC Sub surviving as a wholly owned subsidiary of Midstates. On the effective date of the Merger, Midstates changed its name to “Amplify Energy Corp.” (the “Company”) and LLC Sub changed its name to “Amplify Energy Holdings LLC.”

For financial reporting purposes, the Merger represented a “reverse merger” and Legacy Amplify was deemed to be the accounting acquirer in the transaction. Legacy Amplify’s historical results of operations will replace Midstates’ historical results of operations for all periods prior to the Merger and, for all periods following the Merger, the Company’s financial statements will reflect the results of operations of the combined company. Accordingly, the financial statements for the Company included in this Quarterly Report on Form 10-Q for periods prior to the Merger are not the same as Midstates prior reported filings with the SEC, which were derived from the operations of Midstates. As a result, period-to-period comparisons of our operating results may not be meaningful. The results of any one quarter should not be relied upon as an indication of future performance.

When referring to Legacy Amplify, the intent is to refer to Amplify Energy Corp. prior to the effective date of the Merger, and its consolidated subsidiaries as a whole or on an individual basis, depending on the context in which the statements are made.

We operate in one reportable segment engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Our management evaluates performance based on one reportable business segment as the economic environments are not different within the operation of our oil and natural gas properties. Our assets consist primarily of producing oil and natural gas properties and are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas / North Louisiana and South Texas. Most of our oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells.

Basis of Presentation

Basis of Presentation

Our Unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and guidelines of the SEC. The results reported in these Unaudited Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Although we believe the disclosures in these financial statements are adequate, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC.

The Unaudited Condensed Consolidated Financial Statements have been prepared as if the Company is a going concern and reflect the application of Accounting Standards Codification 852 “Reorganizations” (“ASC 852”). ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains and losses that were realized or incurred in the bankruptcy proceedings are recorded in “reorganization items, net” on the Company’s Unaudited Condensed Statements of Consolidated Operations.

All intercompany transactions and balances have been eliminated in preparation of our consolidated financial statements.

Risk and Uncertainties

Risk and Uncertainties

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine the extent of the impact caused by the COVID-19 pandemic to the Company’s operations.

The pandemic has lowered the demand for oil and natural gas which has led to low commodity prices. The reductions in commodity prices has resulted in lower levels of cash flow from operating activities. In addition, the borrowing base under our Revolving Credit Facility (as defined below) is subject to redetermination on at least a semi-annual basis primarily based on an engineering report with respect to our estimated oil, NGL and natural gas reserves which will take into account the prevailing oil, NGL and natural gas prices at such time, as adjusted for the impact of our commodity derivative contracts. Continued low commodity prices will likely adversely impact our redeterminations. The reduction in commodity prices has directly led to an impairment of our oil and natural gas properties. There may be further impairments in future periods if commodity prices continue to decline.

Definitive Merger Agreement

Definitive Merger Agreement

On May 5, 2019, as discussed above, the Company entered into the Merger Agreement pursuant to which Legacy Amplify merged with a subsidiary of Midstates in an all-stock merger-of-equals. Under the terms of the Merger Agreement, Legacy Amplify stockholders received 0.933 shares of newly issued Company common stock for each share of Legacy Amplify common stock that they owned. The Merger closed on August 6, 2019.

Use of Estimates

Use of Estimates

The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion, and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations.

Lease Recognition

Lease Recognition

In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance regarding the accounting for leases. The FASB retained a dual model, requiring leases to be classified as either direct financing or operating leases. The classification will be based on criteria that are similar to the current lease accounting treatment. The Company is the lessee under various agreements for office space, compressors, equipment, vehicles and surface rentals (right of use assets) that are currently accounted for as operating leases.

The Company applied the revised lease rules for our interim and annual reporting periods starting January 1, 2019 using the modified retrospective approach with a cumulative impact to retained earnings in that period, and including several optional practical expedients relating to leases commenced before the effective date. The practical expedients the Company adopted are: (1) the original correct assessment of a contract containing a lease will be accepted without further review on all existing or expired contracts; (2) the original lease classification as an operating lease will convert as an operating lease under the new guidance; (3) initial direct costs for any existing leases will not be reassessed; (4) existing land easements or right of use agreements will continue under current accounting policy and only new agreements will be evaluated in the future; and (5) short-term leases for twelve months or less will not be evaluated under the guidance.

See Note 12 for additional information regarding the adoption of the leases standard.

Current Expected Credit Losses

Current Expected Credit Losses

In May 2019, the FASB issued an accounting standard update to provide entities with an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon the adoption. The fair value option election does not apply to held-to-maturity debt securities. The Company adopted the guidance as of January 1, 2020. The Company has evaluated the impact of this guidance and concluded that the current and historical evaluation of estimated credit losses falls within the acceptable guidance.

The provisions of the standard were interpreted to relate only to the Company’s accounts receivable, net. Trade receivables relate to one common pool, revenue earned on the sale of oil, natural gas and natural gas liquids. The performance obligation is satisfied at a point in time and revenue is recognized and a trade receivable is recorded from the sale when production is delivered to, and title has transferred to, the purchaser. The majority of the Company’s purchasers have been large major companies in the industry with the wherewithal to pay.  

The Company, as operator on most of our wells, also records receivables on billings to our joint interest owners who participate in the operating costs of the wells they have an interest in. Historically an allowance for doubtful accounts has been set up to recognize credit losses on joint interest billing (“JIB”) receivables based upon an aging analysis which is an appropriate method to estimate credit losses under the guidance. The Company will continue to assess the expected credit loss in the future as economic conditions change. Considering the recent drop in commodity prices we believe the majority of our revenue purchasers have the size and financial condition to currently meet their obligations. There could be added risk on the JIB accounts receivable as some wells could become uneconomic, with the revenue not enough to cover operating expenses billed, which could result in additional write-offs. The Company will continue to closely monitor trade receivables. Based upon the analysis performed there was no impact to beginning retained earnings upon the adoption of the guidance.

New Accounting Pronouncements

New Accounting Pronouncements

Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued an accounting standard update which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. This accounting standards update removes the following exceptions: (i) exception to the incremental approach for intraperiod tax allocation when there is a loss continuing operations and income or a gain from other items; (ii) exception to the requirements to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (iii) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (iv) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the accounting standards update also improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. The new guidance is effective for fiscal years and interim period within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of this guidance and does not expect the guidance to have a material impact on the Company's financial statements.

Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows.

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Related Party Transactions

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Note 14. Related Party Transactions

Related Party Agreements

There have been no transactions in excess of $120,000 between us and any related person in which the related person had a direct or indirect material interest for the three months ended March 31, 2020 and 2019, respectively.

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Risk Management and Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Open Commodity Positions

At March 31, 2020, we had the following open commodity positions:

	Remaining
	2020			2021			2022
Natural Gas Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (MMBtu)		650,000			487,500			300,000
Weighted-average fixed price	$	2.54		$	2.48		$	2.46
Collar contracts:
Two-way collars
Average monthly volume (MMBtu)		420,000			162,500			—
Weighted-average floor price	$	2.60		$	2.58		$	—
Weighted-average ceiling price	$	2.88		$	2.84		$	—
Natural Gas Basis Swaps:
PEPL basis swaps:
Average monthly volume (MMBtu)		600,000			500,000			—
Weighted-average spread	$	(0.46	)	$	(0.40	)	$	—
Crude Oil Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		209,300			116,250			30,000
Weighted-average fixed price	$	57.44		$	56.05		$	55.32
Collar contracts:
Two-way collars
Average monthly volume (Bbls)		14,300			—			—
Weighted-average floor price	$	55.00		$	—		$	—
Weighted-average ceiling price	$	62.10		$	—		$	—
Three-way collars
Average monthly volume (Bbls)		30,500			—			—
Weighted-average ceiling price	$	65.75		$	—		$	—
Weighted-average floor price	$	50.00		$	—		$	—
Weighted-average sub-floor price	$	40.00		$	—		$	—
NGL Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		65,450			22,800			—
Weighted-average fixed price	$	25.27		$	24.25		$	—

Interest Rate Swap Open Positions

At March 31, 2020, we had the following interest rate swap open positions:

	Remaining
	2020			2021			2022
Average Monthly Notional (in thousands)	$	125,000		$	125,000		$	75,000
Weighted-average fixed rate		1.612	%		1.612	%		1.281	%
Floating rate	1 Month LIBOR			1 Month LIBOR			1 Month LIBOR

Gross Fair Value of Derivative Instruments by Appropriate Balance Sheet

The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at March 31, 2020 and December 31, 2019. There was no cash collateral received or pledged associated with our derivative instruments since most of the counterparties, or certain of their affiliates, to our derivative contracts are lenders under our credit agreement.

		Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
		March 31,			March 31,			December 31,			December 31,
Type	Balance Sheet Location	2020			2020			2019			2019
		(In thousands)
Commodity contracts	Short-term derivative instruments	$	83,477		$	4,139		$	11,518		$	5,887
Interest rate swaps	Short-term derivative instruments		—			1,621			248			253
Gross fair value			83,477			5,760			11,766			6,140
Netting arrangements			(5,070	)		(5,070	)		(5,887	)		(5,887	)
Net recorded fair value	Short-term derivative instruments	$	78,407		$	690		$	5,879		$	253
Commodity contracts	Long-term derivative instruments	$	28,036		$	513		$	6,990		$	973
Interest rate swaps	Long-term derivative instruments		—			1,981			347			305
Gross fair value			28,036			2,494			7,337			1,278
Netting arrangements			(581	)		(581	)		(973	)		(973	)
Net recorded fair value	Long-term derivative instruments	$	27,455		$	1,913		$	6,364		$	305

Unrealized and Realized Gains and Losses Related to Derivative Instruments

The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands):

		For the Three Months Ended
	Statements of	March 31,
	Operations Location	2020			2019
Commodity derivative contracts	(Gain) loss on commodity derivatives	$	(107,713	)	$	32,487
Interest rate derivatives	Interest expense, net		3,616			(94	)

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Long-Term Debt - Consolidated Debt Obligations (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Line Of Credit Facility [Line Items]
Long-term debt	$ 290,000	$ 285,000
Credit Facility [Member]
Line Of Credit Facility [Line Items]
Aggregate principal outstanding	$ 290,000	$ 285,000

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Fair Value Measurements of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value [Member] - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	$ 111,512	$ 19,104
Total liabilities	8,253	7,419
Quoted Prices in Active Market (Level 1) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	0
Total liabilities	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	111,512	19,104
Total liabilities	8,253	7,419
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	0
Total liabilities	0	0
Commodity derivatives [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	111,512	18,509
Total liabilities	4,651	6,861
Commodity derivatives [Member] | Quoted Prices in Active Market (Level 1) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	0
Total liabilities	0	0
Commodity derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	111,512	18,509
Total liabilities	4,651	6,861
Commodity derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	0
Total liabilities	0	0
Interest rate derivatives [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	595
Total liabilities	3,602	558
Interest rate derivatives [Member] | Quoted Prices in Active Market (Level 1) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	0
Total liabilities	0	0
Interest rate derivatives [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	595
Total liabilities	3,602	558
Interest rate derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Total assets	0	0
Total liabilities	$ 0	$ 0

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Risk Management and Derivative Instruments - Interest Rate Swap Open Positions (Detail)	3 Months Ended
	Mar. 31, 2020 USD ($)
Interest Rate Swap Open Position Remaining 2020 [Member]
Derivative [Line Items]
Average Monthly Notional (in thousands)	$ 125,000,000
Weighted-average fixed rate	1.612%
Floating rate	1 Month LIBOR
Interest Rate Swap Open Position 2021 [Member]
Derivative [Line Items]
Average Monthly Notional (in thousands)	$ 125,000,000
Weighted-average fixed rate	1.612%
Floating rate	1 Month LIBOR
Interest Rate Swap Open Position 2022 [Member]
Derivative [Line Items]
Average Monthly Notional (in thousands)	$ 75,000,000
Weighted-average fixed rate	1.281%
Floating rate	1 Month LIBOR

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1. Organization and Basis of Presentation

General

On August 6, 2019, Midstates Petroleum Company, Inc., a Delaware corporation (“Midstates”), completed its business combination (the “Merger”) with Amplify Energy Corp. (“Legacy Amplify”) in accordance with the terms of that certain Agreement and Plan of Merger, dated May 5, 2019 (the “Merger Agreement”), by and among Midstates, Legacy Amplify and Midstates Holdings, Inc., a Delaware corporation and direct, wholly owned subsidiary of Midstates (“Merger Sub”). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Legacy Amplify, with Legacy Amplify surviving the Merger as a wholly owned subsidiary of Midstates, and immediately following the Merger, Legacy Amplify merged with and into Alpha Mike Holdings LLC, a Delaware limited liability company and wholly owned subsidiary of Midstates (“LLC Sub”), with LLC Sub surviving as a wholly owned subsidiary of Midstates. On the effective date of the Merger, Midstates changed its name to “Amplify Energy Corp.” (the “Company”) and LLC Sub changed its name to “Amplify Energy Holdings LLC.”

For financial reporting purposes, the Merger represented a “reverse merger” and Legacy Amplify was deemed to be the accounting acquirer in the transaction. Legacy Amplify’s historical results of operations will replace Midstates’ historical results of operations for all periods prior to the Merger and, for all periods following the Merger, the Company’s financial statements will reflect the results of operations of the combined company. Accordingly, the financial statements for the Company included in this Quarterly Report on Form 10-Q for periods prior to the Merger are not the same as Midstates prior reported filings with the SEC, which were derived from the operations of Midstates. As a result, period-to-period comparisons of our operating results may not be meaningful. The results of any one quarter should not be relied upon as an indication of future performance.

When referring to Legacy Amplify, the intent is to refer to Amplify Energy Corp. prior to the effective date of the Merger, and its consolidated subsidiaries as a whole or on an individual basis, depending on the context in which the statements are made.

We operate in one reportable segment engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Our management evaluates performance based on one reportable business segment as the economic environments are not different within the operation of our oil and natural gas properties. Our assets consist primarily of producing oil and natural gas properties and are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas / North Louisiana and South Texas. Most of our oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells.

Basis of Presentation

Our Unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and guidelines of the SEC. The results reported in these Unaudited Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Although we believe the disclosures in these financial statements are adequate, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC.

The Unaudited Condensed Consolidated Financial Statements have been prepared as if the Company is a going concern and reflect the application of Accounting Standards Codification 852 “Reorganizations” (“ASC 852”). ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains and losses that were realized or incurred in the bankruptcy proceedings are recorded in “reorganization items, net” on the Company’s Unaudited Condensed Statements of Consolidated Operations.

All intercompany transactions and balances have been eliminated in preparation of our consolidated financial statements.

Risk and Uncertainties

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine the extent of the impact caused by the COVID-19 pandemic to the Company’s operations.

The pandemic has lowered the demand for oil and natural gas which has led to low commodity prices. The reductions in commodity prices has resulted in lower levels of cash flow from operating activities. In addition, the borrowing base under our Revolving Credit Facility (as defined below) is subject to redetermination on at least a semi-annual basis primarily based on an engineering report with respect to our estimated oil, NGL and natural gas reserves which will take into account the prevailing oil, NGL and natural gas prices at such time, as adjusted for the impact of our commodity derivative contracts. Continued low commodity prices will likely adversely impact our redeterminations. The reduction in commodity prices has directly led to an impairment of our oil and natural gas properties. There may be further impairments in future periods if commodity prices continue to decline.

Definitive Merger Agreement

On May 5, 2019, as discussed above, the Company entered into the Merger Agreement pursuant to which Legacy Amplify merged with a subsidiary of Midstates in an all-stock merger-of-equals. Under the terms of the Merger Agreement, Legacy Amplify stockholders received 0.933 shares of newly issued Company common stock for each share of Legacy Amplify common stock that they owned. The Merger closed on August 6, 2019.

Use of Estimates

The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant estimates include, but are not limited to, oil and natural gas reserves; depreciation, depletion, and amortization of proved oil and natural gas properties; future cash flows from oil and natural gas properties; impairment of long-lived assets; fair value of derivatives; fair value of equity compensation; fair values of assets acquired and liabilities assumed in business combinations and asset retirement obligations.

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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Warrants issued	9,153,522	9,153,522
Warrants outstanding	9,153,522	9,153,522
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	37,568,164	37,566,540
Common stock, shares outstanding	37,568,164	37,566,540

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Leases - Schedule of Weighted Average Remaining Lease Terms and Discount Rate of Operating Leases (Detail)	Mar. 31, 2020	Mar. 31, 2019
Office Leases [Member]
Lessee Lease Description [Line Items]
Weighted average remaining lease term	1 year 3 months 7 days	2 years 3 months 25 days
Weighted average discount rate	3.50%	4.10%
Vehicles [Member]
Lessee Lease Description [Line Items]
Weighted average remaining lease term	6 months 18 days	4 months 24 days
Weighted average discount rate	1.00%	0.50%
Office Equipment [Member]
Lessee Lease Description [Line Items]
Weighted average remaining lease term	25 days	1 month 13 days
Weighted average discount rate	0.20%	0.20%

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Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Lease, option to terminate	leases can be terminated with 30-day prior written notice
Lease termination period with prior written notice	30 days
Costs relating to operating leases	$ 0.6	$ 0.5

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Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

Summary of Changes in Asset Retirement Obligations

The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2020 (in thousands):

Asset retirement obligations at beginning of period	$	91,089
Liabilities added from acquisition or drilling		—
Liabilities settled		—
Liabilities removed upon sale of wells		—
Accretion expense		1,513
Revision of estimates		—
Asset retirement obligation at end of period		92,602
Less: Current portion		(623	)
Asset retirement obligations - long-term portion	$	91,979

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Revenue (Tables)

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Summary of Revenues Disaggregated

We have identified three material revenue streams in our business: oil, natural gas and NGLs. The following table present our revenues disaggregated by revenue stream.

	For the Three Months Ended
	March 31,
	2020		2019
	(in thousands)
Revenues
Oil	$	41,851	$	40,057
NGLs		5,122		5,865
Natural gas		10,814		19,145
Oil and natural gas sales	$	57,787	$	65,067

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15. Commitments and Contingencies

Litigation and Environmental

We are not aware of any litigation, pending or threatened, that we believe will have a material adverse effect on our financial position, results of operations or cash flows; however, cash flow could be significantly impacted in the reporting periods in which such matters are resolved.

Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify us against liabilities arising from future legal proceedings.

At March 31, 2020 and December 31, 2019, we had no environmental reserves recorded on our Unaudited Condensed Consolidated Balance Sheet.

Minimum Volume Commitment

The Company is party to a gas purchase, gathering and processing contract in Oklahoma, which includes certain minimum NGL commitments. To the extent the Company does not deliver natural gas volumes in sufficient quantities to generate, when processed, the minimum levels of recovered NGLs, it would be required to reimburse the counterparty an amount equal to sum of the monthly shortfall, if any, multiplied by a fee. The Company is not meeting the minimum volume required under these contractual provisions. The commitment fee expense for the three months ended March 31, 2020, was approximately $0.2 million.

The Company is party to a gas purchase, gathering and processing contract in East Texas, which includes certain minimum NGL commitments. The Company anticipates that a shortfall will occur for the year-end 2020 and has established an accrual for the commitment fee expense of $0.3 million for the three months ended March 31, 2020.

Supplemental Bond for Decommissioning Liabilities Trust Agreement

Beta Operating Company, LLC, has an obligation with the BOEM in connection with its 2009 acquisition of our properties in federal waters offshore Southern California. The Company supports this obligation with $161.3 million of A-rated surety bonds and $0.3 million of cash.

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Acquisitions and Divestitures - Summary of Unaudited Pro Forma Financial Information (Detail) - Legacy Amplify, Midstates and Midstates Holdings, Inc. [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares
Business Acquisition [Line Items]
Revenues | $	$ 94,996
Net income (loss) | $	$ (32,035)
Earnings per share:
Basic | $ / shares	$ (0.73)
Diluted | $ / shares	$ (0.73)

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Risk Management and Derivative Instruments - Open Commodity Positions (Detail)	3 Months Ended
	Mar. 31, 2020 MMBTU $ / MMBTU $ / bbl bbl
Natural Gas Derivative Contracts Fixed Price Swap 2022 [Member]
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	300,000
Weighted-average fixed price | $ / MMBTU	2.46
Natural Gas Derivative Two Way Collars Contracts 2022 [Member]
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	0
Weighted-average floor price	0
Weighted-average ceiling price	0
Natural Gas P E P L Basis Swaps Two Thousand Twenty Two
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	0
Weighted-average spread | $ / MMBTU	0
Crude Oil Derivative Contracts Fixed Price Swap 2022 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	30,000
Weighted-average fixed price	55.32
Crude Oil Derivative Two Way Collars Contracts 2022 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	0
Weighted-average floor price	0
Weighted-average ceiling price	0
Crude Oil Derivative Three Way Collars Contracts 2022 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	0
Weighted-average floor price	0
Weighted-average ceiling price	0
Weighted-average sub-floor price	0
NGL Derivative Contracts Fixed Price Swap 2022 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	0
Weighted-average fixed price	0
Natural Gas Derivative Contracts Fixed Price Swap 2021 [Member]
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	487,500
Weighted-average fixed price | $ / MMBTU	2.48
Natural Gas Derivative Two Way Collars Contracts 2021 [Member]
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	162,500
Weighted-average floor price	2.58
Weighted-average ceiling price	2.84
Natural Gas P E P L Basis Swaps Two Thousand Twenty One
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	500,000
Weighted-average spread | $ / MMBTU	(0.40)
Crude Oil Derivative Contracts Fixed Price Swap 2021 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	116,250
Weighted-average fixed price	56.05
Crude Oil Derivative Two Way Collars Contracts 2021 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	0
Weighted-average floor price	0
Weighted-average ceiling price	0
Crude Oil Derivative Three Way Collars Contracts 2021 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	0
Weighted-average floor price	0
Weighted-average ceiling price	0
Weighted-average sub-floor price	0
NGL Derivative Contracts Fixed Price Swap 2021 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	22,800
Weighted-average fixed price	24.25
Natural Gas Derivative Contracts Fixed Price Swap Remaining 2020 [Member]
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	650,000
Weighted-average fixed price | $ / MMBTU	2.54
Natural Gas Derivative Two Way Collars Contracts Remaining 2020 [Member]
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	420,000
Weighted-average floor price	2.60
Weighted-average ceiling price	2.88
Natural Gas PEPL Basis Swaps Remaining Remaining 2020 [Member]
Derivative [Line Items]
Average monthly volume (MMBtu) | MMBTU	600,000
Weighted-average spread | $ / MMBTU	(0.46)
Crude Oil Derivative Contracts Fixed Price Swap Remaining 2020 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	209,300
Weighted-average fixed price	57.44
Crude Oil Derivative Two Way Collars Contracts Remaining 2020 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	14,300
Weighted-average floor price	55.00
Weighted-average ceiling price	62.10
Crude Oil Derivative Three Way Collars Contracts Remaining 2020 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	30,500
Weighted-average floor price	50.00
Weighted-average ceiling price	65.75
Weighted-average sub-floor price	40.00
NGL Derivative Contracts Fixed Price Swap Remaining 2020 [Member]
Derivative [Line Items]
Average monthly volume (Bbls) | bbl	65,450
Weighted-average fixed price	25.27

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Asset Retirement Obligations - Summary of Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations at beginning of period	$ 91,089
Liabilities added from acquisition or drilling	0
Liabilities settled	0
Liabilities removed upon sale of wells	0
Accretion of asset retirement obligations	1,513	$ 1,311
Revision of estimates	0
Asset retirement obligation at end of period	92,602
Less: Current portion	(623)		$ (623)
Asset retirement obligations	$ 91,979		$ 90,466

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Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Current Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accrued Liabilities Current [Abstract]
Accrued lease operating expense	$ 10,692	$ 11,794
Accrued capital expenditures	6,559	5,515
Accrued general and administrative expense	2,652	3,126
Operating lease liability	2,202	1,712
Accrued ad valorem tax	1,099	520
Asset retirement obligations	623	623
Accrued interest payable	30	36
Other	43	32
Accrued liabilities	$ 23,900	$ 23,358

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Leases - Schedule of Supplemental Cash Flow Information Related to Lease Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental Cash Flow Information [Abstract]
Non-cash amounts included in the measurement of lease liabilities, operating cash flows from operating leases	$ 330	$ 5,010

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UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Warrants [Member]	Additional Paid in Capital [Member]	Accumulated Earnings (Deficit) [Member]
Balance at Dec. 31, 2018	$ 416,558	$ 3	$ 4,788	$ 355,872	$ 55,895
Net loss	(31,477)	0	0	0	(31,477)
Costs incurred in conjunction with tender offer	(107)	0	0	(107)	0
Share-based compensation expense	1,443	0	0	1,443	0
Common stock repurchased and retired under the share repurchase program	(920)	0	0	(920)	0
Balance at Mar. 31, 2019	385,497	3	4,788	356,288	24,418
Balance at Dec. 31, 2019	434,207	209	4,790	424,399	4,809
Net loss	(367,199)	0	0	0	(367,199)
Share-based compensation expense	(1,112)	0	0	(1,112)	0
Restricted shares repurchased	(14)	0	0	(14)	0
Dividends	(3,786)	0	0	0	(3,786)
Balance at Mar. 31, 2020	$ 62,096	$ 209	$ 4,790	$ 423,273	$ (366,176)

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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 1,894	$ 0
Restricted cash	0	325
Accounts receivable, net	24,654	33,145
Short-term derivative instruments	78,407	5,879
Prepaid expenses and other current assets	11,426	13,238
Total current assets	116,381	52,587
Property and equipment, at cost:
Oil and natural gas properties, successful efforts method	762,149	797,005
Support equipment and facilities	141,178	140,023
Other	8,349	8,045
Accumulated depreciation, depletion and impairment	(562,614)	(141,350)
Property and equipment, net	349,062	803,723
Long-term derivative instruments	27,455	6,364
Restricted investments	4,622	4,622
Operating lease - long term right-of-use asset	4,076	4,406
Other long-term assets	5,529	5,837
Total assets	507,125	877,539
Current liabilities:
Accounts payable	3,947	8,310
Revenues payable	27,121	29,167
Accrued liabilities (see Note 13)	23,900	23,358
Short-term derivative instruments	690	253
Total current liabilities	55,658	61,088
Long-term debt (see Note 8)	290,000	285,000
Asset retirement obligations	91,979	90,466
Long-term derivative instruments	1,913	305
Operating lease liability	1,901	2,720
Other long-term liabilities	3,578	3,753
Total liabilities	445,029	443,332
Commitments and contingencies (see Note 15)	0	0
Stockholders' equity:
Preferred stock, $0.01 par value: 50,000,000 shares authorized; no shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	0	0
Warrants, 9,153,522 warrants issued and outstanding at March 31, 2020 and December 31, 2019, respectively	4,790	4,790
Common stock, $0.01 par value: 250,000,000 shares authorized; 37,568,164 and 37,566,540 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	209	209
Additional paid-in capital	423,273	424,399
Accumulated earnings	(366,176)	4,809
Total stockholders' equity	62,096	434,207
Total liabilities and equity	$ 507,125	$ 877,539

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Long-Term Incentive Plans - Summary of Fair Value Assumptions (Detail) - PSUs [Member] - $ / shares		3 Months Ended
	Jan. 01, 2020	Mar. 31, 2020
Share Price Target 12.50 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share price targets		$ 12.50
Risk-free interest rate	1.61%
Dividend yield		12.10%
Expected volatility	60.00%
Calculated fair value per PSU	$ 3.66
Share Price Target 15.00 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share price targets		$ 15.00
Risk-free interest rate	1.61%
Dividend yield		12.10%
Expected volatility	60.00%
Calculated fair value per PSU	$ 2.98
Share Price Target 17.50 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share price targets		$ 17.50
Risk-free interest rate	1.61%
Dividend yield		12.10%
Expected volatility	60.00%
Calculated fair value per PSU	$ 2.46

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Earnings per Share - Calculation of Earnings (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Line Items]
Net loss		$ (367,199)	$ (31,477)
Net (income) loss allocated to participating restricted stockholders		0	0
Basic and diluted earnings available to common stockholders		$ (367,199)	$ (31,477)
Common shares/units:
Common shares outstanding — basic		37,568	22,179
Dilutive effect of potential common shares		0	0
Common shares outstanding — diluted		37,568	22,179
Net earnings per share:
Basic		$ (9.77)	$ (1.42)
Diluted		$ (9.77)	$ (1.42)
Warrants [Member]
Net earnings per share:
Antidilutive warrants	[1]	9,154	2,174

[1] Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect.

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Long-Term Debt - Summary of Weighted-Average Interest Rates Paid Excluding Commitment Fees on Variable-Rate Debt Obligations (Detail)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Credit Facility [Member]
Line Of Credit Facility [Line Items]
Revolving credit facility, weighted-average interest rates	3.97%	5.07%

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Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Additional Textual [Abstract]
Remaining environmental accrued liability recorded	$ 0	$ 0
Beta's decommissioning obligations, supported by surety bonds	161,300,000
Beta's decommissioning obligations, cash	300,000
Commitment fee expense	200,000
Commitment fee expense accrual	$ 300,000

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Long-Term Incentive Plans

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Long-Term Incentive Plans

Note 11. Long-Term Incentive Plans

In May 2017, Legacy Amplify implemented the Management Incentive Plan (the “Legacy Amplify MIP”). In connection with the closing of the Merger, on August 6, 2019, the Company assumed the Legacy Amplify MIP.

Restricted Stock Units

Restricted Stock Units with Service Vesting Condition

The restricted stock units with service vesting conditions (“TSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost associated with the TSUs was $0.8 million at March 31, 2020. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 1.7 years.

The following table summarizes information regarding the TSUs granted under the Legacy Amplify MIP for the period presented:

				Weighted-
				Average Grant
	Number of			Date Fair Value
	Units			per Unit (1)
TSUs outstanding at December 31, 2019		291,370		$	5.18
Granted (2)		18,250		$	6.61
Forfeited		(1,244	)	$	5.12
Vested		(2,411	)	$	5.12
TSUs outstanding at March 31, 2020		305,965		$	5.27

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2) The aggregate grant date fair value of TSUs issued for the three months ended March 31, 2020 was $0.1 million based on a grant date market price of $6.61 per share.

Restricted Stock Units with Market and Service Vesting Conditions

The restricted stock units with market and service vesting conditions (“PSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a graded-vesting basis. As such, the Company recognizes compensation cost over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. The Company accounts for forfeitures as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost related to the PSUs was $0.1 million at March 31, 2020. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 1.5 years.

The PSUs will vest based on the satisfaction of service and market vesting conditions with market vesting based on the Company’s achievement of certain share price targets. The PSUs are subject to service-based vesting such that 50% of the PSUs service vest on the applicable market vesting date and an additional 25% of the PSUs service vest on each of the first and second anniversaries of the applicable market vesting date.

In the event of a qualifying termination, subject to certain conditions, (i) all PSUs that have satisfied the market vesting conditions will fully service vest, upon such termination, and (ii) if the termination occurs between the second and third anniversaries of the grant date, then PSUs that have not market vested as of the termination will market vest to the extent that the share targets (in each case, reduced by $0.25) are achieved as of such termination. Subject to the foregoing, any unvested PSUs will be forfeited upon termination of employment.

A Monte Carlo simulation was used in order to determine the fair value of these awards at the grant date.

The assumptions used to estimate the fair value of the PSUs are as follows:

Share price targets	$	12.50		$	15.00		$	17.50
Risk-free interest rate:
Awards Issued on January 1, 2020		1.61	%		1.61	%		1.61	%
Dividend yield		12.1	%		12.1	%		12.1	%
Expected volatility:
Awards Issued on January 1, 2020		60.0	%		60.0	%		60.0	%
Calculated fair value per PSU:
Awards Issued on January 1, 2020	$	3.66		$	2.98		$	2.46

The following table summarizes information regarding the PSUs granted under the Legacy Amplify MIP for the period presented:

				Weighted-
				Average Grant
	Number of			Date Fair Value
	Units			per Unit (1)
PSUs outstanding at December 31, 2019		305,893		$	2.15
Granted (2)		18,250		$	3.03
Forfeited		(1,866	)	$	2.11
Vested		—		$	—
PSUs outstanding at March 31, 2020		322,277		$	2.20

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2) The aggregate grant date fair value of PSUs issued for the three months ended March 31, 2020 was less than $0.1 million based on a calculated fair value price ranging from $2.46 to $3.66 per share.

2017 Non-Employee Directors Compensation Plan

In June 2017, Legacy Amplify implemented the 2017 Non-Employee Directors Compensation Plan (“Legacy Amplify Non-Employee Directors Compensation Plan”) to attract and retain the services of experienced non-employee directors of Legacy Amplify or its subsidiaries. In connection with the closing of the Merger, on August 6, 2019, the Company assumed the Legacy Amplify Non-Employee Directors Compensation Plan.

The restricted stock units with a service vesting condition (“Board RSUs”) are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. Compensation costs are recorded as general and administrative expense. The unrecognized cost associated with restricted stock unit awards was less than $0.1 million at March 31, 2020. We expect to recognize the unrecognized compensation cost for these awards over a weighted-average period of approximately 2.0 years.

The following table summarizes information regarding the Board RSUs granted under the Legacy Amplify Non-Employee Directors Compensation Plan for the period presented:

			Weighted-
			Average Grant
	Number of		Date Fair Value
	Units		per Unit (1)
Board RSUs outstanding at December 31, 2019		16,157	$	5.12
Granted		—	$	—
Forfeited		—	$	—
Vested		—	$	—
Board RSUs outstanding at March 31, 2020		16,157	$	5.12

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

Compensation Expense

The following table summarizes the amount of recognized compensation expense associated with the Legacy Amplify MIP and Legacy Amplify Non-Employee Directors Compensation Plan, which are reflected in the accompanying Unaudited Condensed Statements of Consolidated Operations for the periods presented (in thousands):

	For the Three Months Ended
	March 31,
	2020		2019
Equity classified awards
TSUs	$	131	$	669
PSUs		37		396
Board RSUs		5		113
	$	173	$	1,178

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Asset Retirement Obligations

3 Months Ended

Mar. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Note 7. Asset Retirement Obligations

The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2020 (in thousands):

Asset retirement obligations at beginning of period	$	91,089
Liabilities added from acquisition or drilling		—
Liabilities settled		—
Liabilities removed upon sale of wells		—
Accretion expense		1,513
Revision of estimates		—
Asset retirement obligation at end of period		92,602
Less: Current portion		(623	)
Asset retirement obligations - long-term portion	$	91,979

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Consolidated Debt Obligations

The following table presents our consolidated debt obligations at the dates indicated:

	March 31,		December 31,
	2020		2019
	(In thousands)
Revolving Credit Facility (1)	$	290,000	$	285,000
Long-term debt	$	290,000	$	285,000

(1) The carrying amount of our Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates.

Summary of Weighted-Average Interest Rates Paid Excluding Commitment Fees on Variable-Rate Debt Obligations

The following table presents the weighted-average interest rates paid, excluding commitment fees, on our consolidated variable-rate debt obligations for the periods presented:

	For the Three Months Ended
	March 31,
	2020	2019
Revolving Credit Facility	3.97%	5.07%

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Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule of Supplemental Cash Flow Information Related to Lease Liabilities

Supplemental cash flow information related to the Company’s lease liabilities are included in the table below:

	For the Three Months Ended
	March 31,
	2020		2019
	(In thousands)
Non-cash amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	330	$	5,010

Schedule of Right-of-Use Assets and Lease Liabilities

The following table presents the Company’s right-of-use assets and lease liabilities for the period presented:

	March 31,		December 31,
	2020		2019
	(In thousands)
Right-of-use asset	$	4,076	$	4,406
Lease liabilities:
Current lease liability		2,202		1,712
Long-term lease liability		1,901		2,720
Total lease liability	$	4,103	$	4,432

Schedule of Maturity Analysis of Minimum Lease Payment Obligation Under Non-cancellable Operating Leases

The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands):

	Office leases		Leased vehicles and office equipment		Total
Remaining in 2020	$	1,207	$	551	$	1,758
2021		1,426		564		1,990
2022		341		199		540
2023 and thereafter		—		—		—
Total lease payments	$	2,974	$	1,314	$	4,288
Less: interest	$	139	$	46	$	185
Present value of lease liabilities	$	2,835	$	1,268	$	4,103

Schedule of Weighted Average Remaining Lease Terms and Discount Rate of Operating Leases

The weighted average remaining lease terms and discount rate for all of our operating leases for the period presented:

	For the Three Months Ended
	March 31,
	2020			2019
Weighted average remaining lease term (years):
Office leases		1.27			2.32
Vehicles		0.55			0.40
Office equipment		0.07			0.12
Weighted average discount rate:
Office leases		3.5	%		4.1	%
Vehicles		1.0	%		0.5	%
Office equipment		0.2	%		0.2	%

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Revenue - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Accounts receivable attributable to revenue contracts with customers	$ 16.2	$ 31.9

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Fair Value Measurements of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the gross derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 for each of the fair value hierarchy levels:

	Fair Value Measurements at March 31, 2020 Using
	Quoted Prices in		Significant Other		Significant
	Active Market		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(In thousands)
Assets:
Commodity derivatives	$	—	$	111,512	$	—	$	111,512
Interest rate derivatives		—		—		—		—
Total assets	$	—	$	111,512	$	—	$	111,512
Liabilities:
Commodity derivatives	$	—	$	4,651	$	—	$	4,651
Interest rate derivatives		—		3,602		—		3,602
Total liabilities	$	—	$	8,253	$	—	$	8,253

	Fair Value Measurements at December 31, 2019 Using
	Quoted Prices in		Significant Other		Significant
	Active Market		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(In thousands)
Assets:
Commodity derivatives	$	—	$	18,509	$	—	$	18,509
Interest rate derivatives		—		595		—		595
Total assets	$	—	$	19,104	$	—	$	19,104
Liabilities:
Commodity derivatives	$	—	$	6,861	$	—	$	6,861
Interest rate derivatives		—		558		—		558
Total liabilities	$	—	$	7,419	$	—	$	7,419

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Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 17. Subsequent Events

Retirement of President, Chief Executive Officer and Director

On April 1, 2020, Mr. Kenneth Mariani notified the board of directors of the Company of his decision to retire. Mr. Mariani vacated his service as President and Chief Executive Officer of the Company and as a member of the board of directors, effective April 3, 2020. Mr. Mariani’s decision to retire stems solely from personal reasons and did not result from any disagreement with the Company, the Company’s management or the board of directors.

Appointment of Interim Chief Executive Officer

Effective upon Mr. Mariani’s retirement, Mr. Martyn Willsher was appointed the Company’s Interim Chief Executive Officer. Mr. Willsher continues to serve in his role as Senior Vice President and Chief Financial Officer of the Company.

COVID-19 Pandemic and Organization of the Petroleum Exporting Countries (“OPEC”)

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine the extent of the impact caused by the COVID-19 pandemic to the Company’s operations.

In addition, in March 2020, oil prices severely declined following unsuccessful negotiations between members of OPEC and certain nonmembers, including Russia, to implement production cuts in an effort to decrease the global oversupply and to rebalance supply and demand due to the ongoing COVID-19 pandemic. In April 2020, members of OPEC and Russia agreed to temporary production reductions, but uncertainty about whether such production cuts will be sufficient to rebalance supply and demand remains and may continue for the foreseeable future. We anticipate further market and commodity price volatility for the remainder of 2020 as a result of the events described above.

Notice of Non-Compliance with New York Stock Exchange (“NYSE”) Continued Listing Standards

On April 20, 2020, the Company received written notification (the “Notice”) from the NYSE that the Company no longer satisfied the continued listing compliance standards set forth under Section 802.01C of the NYSE Listed Company Manual (“Section 802.01C”) because the average closing price of the Company’s common stock was below $1.00 over a 30 consecutive trading-day period that ended April 17, 2020. Under the NYSE’s rules, the Company has six months following receipt of the Notice to regain compliance with the minimum share price requirement.

The Company notified the NYSE of its intent to cure the deficiency and return to compliance with the NYSE’s continued listing requirements. The Company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. Under NYSE rules, the common stock will continue to be listed on the NYSE during this six-month cure period, subject to the Company’s compliance with other continued listing requirements. The common stock symbol “AMPY” will be assigned a “.BC” indicator by the NYSE to signify that the Company currently is not in compliance with the NYSE’s continued listing requirements. If the Company fails to regain compliance with Section 802.01C during the cure period, the common stock will be subject to the NYSE’s suspension and delisting procedures.

On April 20, 2020, the NYSE made a rule filing with the SEC for relief from the $1.00 per share continued listing standard, which became immediately effective on April 21, 2020. The relief provides that the cure period will be suspended until June 30, 2020 and will recommence on July 1, 2020. The Company’s cure period under the relief has been extended to December 29, 2020.

Paycheck Protection Program

On April 24, 2020, the Company received a $5.5 million loan under the Paycheck Protection Program (the “PPP”). The PPP was established as part of the CARES Act to provide loans to qualifying businesses. The loans and accrued interest are forgivable after eight weeks provided that the borrower uses the loan proceeds for eligible purposes. At this time, the Company anticipates that a substantial majority of the loan proceeds will be forgiven under the program. The term of the Company’s PPP loan is two years with an annual interest rate of 1% and no payments of principal or interest due during the six-month period beginning on the date of the PPP loan.

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Leases - Schedule of Maturity Analysis of Minimum Lease Payment Obligation Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Lessee Lease Description [Line Items]
Remaining in 2020	$ 1,758
2021	1,990
2022	540
2023 and thereafter	0
Total lease payments	4,288
Less: interest	185
Present value of lease liabilities	4,103	$ 4,432
Office Leases [Member]
Lessee Lease Description [Line Items]
Remaining in 2020	1,207
2021	1,426
2022	341
2023 and thereafter	0
Total lease payments	2,974
Less: interest	139
Present value of lease liabilities	2,835
Leased Vehicles and Office Equipment [Member]
Lessee Lease Description [Line Items]
Remaining in 2020	551
2021	564
2022	199
2023 and thereafter	0
Total lease payments	1,314
Less: interest	46
Present value of lease liabilities	$ 1,268

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Other than the accounting policies implemented in connection with the adoption of the current expected credit losses, there have been no changes to the Company’s significant accounting policies and estimates as described in the Company’s annual financial statements included in our Annual Report on Form 10-K.

Lease Recognition

In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance regarding the accounting for leases. The FASB retained a dual model, requiring leases to be classified as either direct financing or operating leases. The classification will be based on criteria that are similar to the current lease accounting treatment. The Company is the lessee under various agreements for office space, compressors, equipment, vehicles and surface rentals (right of use assets) that are currently accounted for as operating leases.

The Company applied the revised lease rules for our interim and annual reporting periods starting January 1, 2019 using the modified retrospective approach with a cumulative impact to retained earnings in that period, and including several optional practical expedients relating to leases commenced before the effective date. The practical expedients the Company adopted are: (1) the original correct assessment of a contract containing a lease will be accepted without further review on all existing or expired contracts; (2) the original lease classification as an operating lease will convert as an operating lease under the new guidance; (3) initial direct costs for any existing leases will not be reassessed; (4) existing land easements or right of use agreements will continue under current accounting policy and only new agreements will be evaluated in the future; and (5) short-term leases for twelve months or less will not be evaluated under the guidance.

See Note 12 for additional information regarding the adoption of the leases standard.

Current Expected Credit Losses

In May 2019, the FASB issued an accounting standard update to provide entities with an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon the adoption. The fair value option election does not apply to held-to-maturity debt securities. The Company adopted the guidance as of January 1, 2020. The Company has evaluated the impact of this guidance and concluded that the current and historical evaluation of estimated credit losses falls within the acceptable guidance.

The provisions of the standard were interpreted to relate only to the Company’s accounts receivable, net. Trade receivables relate to one common pool, revenue earned on the sale of oil, natural gas and natural gas liquids. The performance obligation is satisfied at a point in time and revenue is recognized and a trade receivable is recorded from the sale when production is delivered to, and title has transferred to, the purchaser. The majority of the Company’s purchasers have been large major companies in the industry with the wherewithal to pay.  

The Company, as operator on most of our wells, also records receivables on billings to our joint interest owners who participate in the operating costs of the wells they have an interest in. Historically an allowance for doubtful accounts has been set up to recognize credit losses on joint interest billing (“JIB”) receivables based upon an aging analysis which is an appropriate method to estimate credit losses under the guidance. The Company will continue to assess the expected credit loss in the future as economic conditions change. Considering the recent drop in commodity prices we believe the majority of our revenue purchasers have the size and financial condition to currently meet their obligations. There could be added risk on the JIB accounts receivable as some wells could become uneconomic, with the revenue not enough to cover operating expenses billed, which could result in additional write-offs. The Company will continue to closely monitor trade receivables. Based upon the analysis performed there was no impact to beginning retained earnings upon the adoption of the guidance.

New Accounting Pronouncements

Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued an accounting standard update which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. This accounting standards update removes the following exceptions: (i) exception to the incremental approach for intraperiod tax allocation when there is a loss continuing operations and income or a gain from other items; (ii) exception to the requirements to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (iii) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (iv) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the accounting standards update also improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. The new guidance is effective for fiscal years and interim period within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of this guidance and does not expect the guidance to have a material impact on the Company's financial statements.

Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows.

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Long-Term Incentive Plans - Summary of Amount of Compensation Expense Recognized (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation expense (benefit)	$ 173	$ 1,178
TSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation expense (benefit)	131	669
PSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation expense (benefit)	37	396
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation expense (benefit)	$ 5	$ 113

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UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Total revenues	$ 58,136,000	$ 65,155,000
Costs and expenses:
Lease operating expense	35,723,000	28,910,000
Exploration	16,000	15,000
Taxes other than income	3,986,000	4,409,000
Depreciation, depletion and amortization	15,556,000	11,166,000
Impairment expense	455,031,000	0
General and administrative expense	8,353,000	9,308,000
Accretion of asset retirement obligations	1,513,000	1,311,000
(Gain) loss on commodity derivative instruments	(107,713,000)	32,487,000
Other, net	0	143,000
Total costs and expenses	417,518,000	92,406,000
Operating loss	(359,382,000)	(27,251,000)
Other income (expense):
Interest expense, net	(7,647,000)	(4,089,000)
Other income (expense)	16,000	0
Total other income (expense)	(7,631,000)	(4,089,000)
Loss before reorganization items, net and income taxes	(367,013,000)	(31,340,000)
Reorganization items, net	(186,000)	(187,000)
Income tax benefit (expense)	0	50,000
Net loss	(367,199,000)	(31,477,000)
Net (income) loss allocated to participating restricted stockholders	0	0
Net loss attributable to common stockholders	$ (367,199,000)	$ (31,477,000)
Earnings per share: (See Note 10)
Basic and diluted earnings per share	$ (9.77)	$ (1.42)
Weighted average common shares outstanding:
Basic and diluted	37,568	22,179
Oil and Natural Gas Sales [Member]
Revenues:
Total revenues	$ 57,787,000	$ 65,067,000
Other Revenues [Member]
Revenues:
Total revenues	349,000	88,000
Gathering, Processing and Transportation [Member]
Costs and expenses:
Gathering, processing and transportation	$ 5,053,000	$ 4,657,000

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Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental Disclosures To Condensed Consolidated Statements Of Cash Flows [Line Items]
Impairment expense	$ 455,031,000	$ 0
Unproved Oil and Natural Gas Properties [Member]
Supplemental Disclosures To Condensed Consolidated Statements Of Cash Flows [Line Items]
Impairment expense	$ 49,300,000	$ 0

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Fair Value Measurements of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Assets And Liabilities Carrying Value And Fair Value [Line Items]
Impairment expense	$ 455,031	$ 0
Proved Developed and Producing Oil and Gas Properties [Member]
Assets And Liabilities Carrying Value And Fair Value [Line Items]
Impairment expense	$ 405,700	$ 0

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Risk Management and Derivative Instruments - Gross Fair Value of Derivative Instruments by Appropriate Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedges, Assets [Abstract]
Asset Derivatives, Net recorded fair value	$ 78,407	$ 5,879
Asset Derivatives, Net recorded fair value	27,455	6,364
Liability Derivatives, Net recorded fair value	690	253
Liability Derivatives, Net recorded fair value	1,913	305
Short-Term Derivative Instruments [Member]
Derivative Instruments and Hedges, Assets [Abstract]
Asset Derivatives, Gross fair value	83,477	11,766
Asset Derivatives, Netting arrangements	(5,070)	(5,887)
Asset Derivatives, Net recorded fair value	78,407	5,879
Liability Derivatives, Gross fair value	5,760	6,140
Liability Derivatives, Netting arrangements	(5,070)	(5,887)
Liability Derivatives, Net recorded fair value	690	253
Short-Term Derivative Instruments [Member] | Commodity derivatives [Member]
Derivative Instruments and Hedges, Assets [Abstract]
Asset Derivatives, Gross fair value	83,477	11,518
Liability Derivatives, Gross fair value	4,139	5,887
Short-Term Derivative Instruments [Member] | Interest Rate Swaps [Member]
Derivative Instruments and Hedges, Assets [Abstract]
Asset Derivatives, Gross fair value	0	248
Liability Derivatives, Gross fair value	1,621	253
Long-Term Derivative Instruments [Member]
Derivative Instruments and Hedges, Assets [Abstract]
Asset Derivatives, Gross fair value	28,036	7,337
Asset Derivatives, Netting arrangements	(581)	(973)
Asset Derivatives, Net recorded fair value	27,455	6,364
Liability Derivatives, Gross fair value	2,494	1,278
Liability Derivatives, Netting arrangements	(581)	(973)
Liability Derivatives, Net recorded fair value	1,913	305
Long-Term Derivative Instruments [Member] | Commodity derivatives [Member]
Derivative Instruments and Hedges, Assets [Abstract]
Asset Derivatives, Gross fair value	28,036	6,990
Liability Derivatives, Gross fair value	513	973
Long-Term Derivative Instruments [Member] | Interest Rate Swaps [Member]
Derivative Instruments and Hedges, Assets [Abstract]
Asset Derivatives, Gross fair value	0	347
Liability Derivatives, Gross fair value	$ 1,981	$ 305

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Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Supplemental Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental cash flows:
Cash paid for interest, net of amounts capitalized	$ 3,017	$ 2,325
Cash paid for reorganization items, net	186	187
Noncash investing and financing activities:
Increase (decrease) in capital expenditures in payables and accrued liabilities	$ (3,206)	$ (2,612)

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Subsequent Event - Additional Information (Details) - Subsequent Event [Member] - USD ($)			1 Months Ended
	Apr. 24, 2020	Apr. 20, 2020	Apr. 17, 2020
Subsequent Event [Line Items]
Continued listing standard, minimum average share price		$ 1.00
Continued listing standard, minimum closing share price		$ 1.00
Loan amount received under paycheck protection plan	$ 5,500,000
Paycheck protection program loan of 2020, term	2 years
Paycheck protection program Loan of 2020, interest rate	1.00%
Paycheck protection program loan, principal or interest due next six months	$ 0
Maximum [Member]
Subsequent Event [Line Items]
Common stock average closing price per share			$ 1.00

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Long-Term Incentive Plans - Summary of Information Regarding Restricted Stock Unit Awards (Detail) - Management Incentive Plan [Member]	3 Months Ended
	Mar. 31, 2020 $ / shares shares
TSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding, Number of Units, Beginning Balance | shares	291,370
Granted, Number of Units | shares	18,250	[1]
Forfeited, Number of Units | shares	(1,244)
Vested, Number of Units | shares	(2,411)
Outstanding, Number of Units, Ending Balance | shares	305,965
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares	$ 5.18	[2]
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares	6.61	[1],[2]
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares	5.12	[2]
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares	5.12	[2]
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares	$ 5.27	[2]
PSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding, Number of Units, Beginning Balance | shares	305,893
Granted, Number of Units | shares	18,250	[3]
Forfeited, Number of Units | shares	(1,866)
Vested, Number of Units | shares	0
Outstanding, Number of Units, Ending Balance | shares	322,277
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares	$ 2.15	[2]
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares	3.03	[2],[3]
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares	2.11	[2]
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares	0	[2]
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares	$ 2.20	[2]

[1] The aggregate grant date fair value of TSUs issued for the three months ended March 31, 2020 was $0.1 million based on a grant date market price of $6.61 per share.

[2] Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

[3] The aggregate grant date fair value of PSUs issued for the three months ended March 31, 2020 was less than $0.1 million based on a calculated fair value price ranging from $2.46 to $3.66 per share.

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Equity (Deficit)- Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions				3 Months Ended	7 Months Ended
	Mar. 30, 2020	Mar. 03, 2020	May 04, 2017	Mar. 31, 2019	Feb. 28, 2020	Mar. 31, 2020	Dec. 31, 2019	Aug. 06, 2019	Dec. 21, 2018
Equity And Distributions [Line Items]
Common stock, shares authorized						250,000,000	250,000,000
Common stock, par value						$ 0.01	$ 0.01
Warrants outstanding						9,153,522	9,153,522
Warrant expiry date								Apr. 21, 2020
Stock repurchase authorized amount								$ 25.0
Shares repurchased during period					4,200,000
Total cost of share repurchase					$ 24.9
Average price per share repurchased					$ 5.94
Dividend declared date		Mar. 03, 2020
Dividends declared per share		$ 0.10
Dividends paid	$ 3.8
Dividend payable record date		Mar. 16, 2020
Warrants [Member]
Equity And Distributions [Line Items]
Warrant issued during period			2,173,913
Warrant life period			5 years
Percentage of common shares to be issued upon exercise of warrants			8.00%
Warrant exercise price			$ 42.60
Third Lien Notes Warrants [Member]
Equity And Distributions [Line Items]
Warrant exercise price								$ 22.78
Warrants outstanding								4,647,520
Unsecured Creditor Warrants [Member]
Equity And Distributions [Line Items]
Warrant exercise price								$ 43.67
Warrants outstanding								2,332,089
Common Stock [Member]
Equity And Distributions [Line Items]
Stock repurchase authorized amount									$ 25.0
Shares repurchased during period				122,581
Average common stock price				$ 7.82
Total cost of share repurchase				$ 0.9

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Calculation of Earnings (Loss) per Share

The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts):

	For the Three Months Ended
	March 31,
	2020			2019
Net loss	$	(367,199	)	$	(31,477	)
Less: Net income allocated to participating restricted stockholders		—			—
Basic and diluted earnings available to common stockholders	$	(367,199	)	$	(31,477	)
Common shares/units:
Common shares outstanding — basic		37,568			22,179
Dilutive effect of potential common shares		—			—
Common shares outstanding — diluted		37,568			22,179
Net earnings per share:
Basic	$	(9.77	)	$	(1.42	)
Diluted	$	(9.77	)	$	(1.42	)
Antidilutive warrants (1)		9,154			2,174

(1) Amount represents warrants to purchase common stock that are excluded from the diluted net earnings per share calculations because of their antidilutive effect.

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Organization and Basis of Presentation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020 Segment shares
Consolidation And Basis Of Presentation [Line Items]
Number of reportable business segments | Segment	1
Legacy Amplify [Member]
Consolidation And Basis Of Presentation [Line Items]
Number of common stock share for each shar | shares	0.933

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Equity (Deficit)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Equity (Deficit)

Note 9. Equity (Deficit)

Common Stock

The Company’s authorized capital stock includes 250,000,000 shares of common stock, $0.01 par value per share. The following is a summary of the changes in our common stock issued for the three months ended March 31, 2020:

	Common
	Shares
Balance, December 31, 2019		37,566,540
Issuance of common stock		—
Restricted stock units vested		2,411
Repurchase of common shares (1)		(787	)
Balance, March 31, 2020		37,568,164

(1) Represents the net settlement on vesting of restricted stock necessary to satisfy the minimum statutory tax withholding requirements.

Warrants

On the May 4, 2017, Legacy Amplify entered into a warrant agreement (the “Warrant Agreement”) with American Stock Transfer & Trust Company, LLC, as warrant agent (“AST”), pursuant to which Legacy Amplify issued warrants to purchase up to 2,173,913 shares of Legacy Amplify’s common stock (representing 8% of Legacy Amplify’s outstanding common stock as of May 4, 2017), including shares of Legacy Amplify’s common stock issuable upon full exercise of the warrants, but excluding any common stock issuable under Legacy Amplify’s Management Incentive Plan, exercisable for a five-year period commencing on May 4, 2017 at an exercise price of $42.60 per share.

On the effective date of the Merger, Legacy Amplify, Midstates and AST entered into an Assignment and Assumption Agreement, pursuant to which the Company agreed to assume Legacy Amplify’s Warrant Agreement.

In connection with the Merger in August 2019, the Company assumed outstanding warrants of 4,647,520 Third Lien Notes Warrants at an exercise price of $22.78 per share (the “Third Lien Warrants”) and 2,332,089 Unsecured Creditor Warrants at an exercise price of $43.67 per share (the “Unsecured Creditor Warrants” and collectively with the Third Lien Warrants, the “Warrants”). As a result of the Merger, the value of the outstanding Warrants was adjusted downward based on the low stock price and estimated fair value as of the Merger date. The Warrants expired on April 21, 2020.

Share Repurchase Program

On December 21, 2018, Legacy Amplify’s board of directors authorized the repurchase of up to $25.0 million of Legacy Amplify outstanding shares of common stock, with repurchases beginning on January 9, 2019. During the three months ended March 31, 2019, Legacy Amplify repurchased 122,581 shares of common stock at an average price of $7.82 for a total cost of approximately $0.9 million. On April 18, 2019, in anticipation of the Merger, Legacy Amplify terminated the repurchase program.

In connection, with the closing of the Merger, the board of directors approved the commencement of an open market share repurchase program of up to $25.0 million of the Company’s outstanding shares of common stock. As of February 28, 2020, the Company had repurchased approximately 4.2 million shares of common stock at an average price of $5.94 per share for a total cost of approximately $24.9 million (inclusive of fees).

Cash Dividend Payment

On March 3, 2020, our board of directors approved a dividend of $0.10 per share of outstanding common stock or $3.8 million in aggregate, which was paid on March 30, 2020, to stockholders of record at the close of business on March 16, 2020. The board of directors of the Company has decided to suspend the quarterly dividend program until further notice. Future dividends, if any, are subject to discretionary approval by the board of directors.

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Fair Value Measurements of Financial Instruments

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements of Financial Instruments

Note 5. Fair Value Measurements of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. A three-tier hierarchy has been established that classifies fair value amounts recognized or disclosed in the financial statements. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). All the derivative instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets were considered Level 2.

The carrying values of accounts receivables, accounts payables (including accrued liabilities), restricted investments and amounts outstanding under long-term debt agreements with variable rates included in the accompanying Unaudited Condensed Consolidated Balance Sheets approximated fair value at March 31, 2020 and December 31, 2019. The fair value estimates are based upon observable market data and are classified within Level 2 of the fair value hierarchy. These assets and liabilities are not presented in the following tables.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair market values of the derivative financial instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 were based on estimated forward commodity prices. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement in its entirety. The significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

The following table presents the gross derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 for each of the fair value hierarchy levels:

	Fair Value Measurements at March 31, 2020 Using
	Quoted Prices in		Significant Other		Significant
	Active Market		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(In thousands)
Assets:
Commodity derivatives	$	—	$	111,512	$	—	$	111,512
Interest rate derivatives		—		—		—		—
Total assets	$	—	$	111,512	$	—	$	111,512
Liabilities:
Commodity derivatives	$	—	$	4,651	$	—	$	4,651
Interest rate derivatives		—		3,602		—		3,602
Total liabilities	$	—	$	8,253	$	—	$	8,253

	Fair Value Measurements at December 31, 2019 Using
	Quoted Prices in		Significant Other		Significant
	Active Market		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(In thousands)
Assets:
Commodity derivatives	$	—	$	18,509	$	—	$	18,509
Interest rate derivatives		—		595		—		595
Total assets	$	—	$	19,104	$	—	$	19,104
Liabilities:
Commodity derivatives	$	—	$	6,861	$	—	$	6,861
Interest rate derivatives		—		558		—		558
Total liabilities	$	—	$	7,419	$	—	$	7,419

See Note 6 for additional information regarding our derivative instruments.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are reported at fair value on a nonrecurring basis as reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets. The following methods and assumptions are used to estimate the fair values:

• The fair value of asset retirement obligations (“AROs”) is based on discounted cash flow projections using numerous estimates, assumptions and judgments regarding factors such as the existence of a legal obligation for an ARO; amounts and timing of settlements; the credit-adjusted risk-free rate; and inflation rates. The initial fair value estimates are based on unobservable market data and are classified within Level 3 of the fair value hierarchy. See Note 7 for a summary of changes in AROs.

• Proved oil and natural gas properties are reviewed for impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of such properties. The Company uses an income approach based on the discounted cash flow method, whereby the present value of expected future net cash flows are discounted by applying an appropriate discount rate, for purposes of placing a fair value on the assets. The future cash flows are based on management’s estimates for the future. The unobservable inputs used to determine fair value include, but are not limited to, estimates of proved reserves, estimates of probable reserves, future commodity prices, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and natural gas properties (some of which are Level 3 inputs within the fair value hierarchy).

• For the three months ended March 31, 2020, we recognized $405.7 million of impairment expense on our proved oil and natural gas properties. These impairments related to certain properties located in East Texas, the Rockies and offshore Southern California. The estimated future cash flows expected from these properties were compared to their carrying values and determined to be unrecoverable primarily as a result of declining commodity prices. The impairments were due to a decline in the value of estimated proved reserves based on declining commodity prices.

• No impairment expense was recognized during the three months ended March 31, 2019.

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Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows

3 Months Ended

Mar. 31, 2020

Supplemental Disclosures To Condensed Consolidated Statements Of Cash Flows [Abstract]

Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows

Note 13. Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows

Accrued Liabilities

Current accrued liabilities consisted of the following at the dates indicated (in thousands):

	March 31,		December 31,
	2020		2019
Accrued lease operating expense	$	10,692	$	11,794
Accrued capital expenditures		6,559		5,515
Accrued general and administrative expense		2,652		3,126
Operating lease liability		2,202		1,712
Accrued ad valorem tax		1,099		520
Asset retirement obligations		623		623
Accrued interest payable		30		36
Other		43		32
Accrued liabilities	$	23,900	$	23,358

Cash and Cash Equivalents Reconciliation

The following table provides a reconciliation of cash and cash equivalents on the Unaudited Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash on the Unaudited Condensed Statements of Consolidated Cash Flows (in thousands):

	March 31,		December 31,
	2020		2019
Cash and cash equivalents	$	1,894	$	—
Restricted cash		—		325
Total cash, cash equivalents and restricted cash	$	1,894	$	325

Unproved Property

We recognized $49.3 million of impairment expense on unproved properties for the three months ended March 31, 2020, which was related to expiring leases and the evaluation of qualitative and quantitative factors related to the current decline in commodity prices. No impairment expense was recorded for unproved properties for the three months ended March 31, 2019.

Supplemental Cash Flows

Supplemental cash flows for the periods presented (in thousands):

	For the Three Months Ended
	March 31,
	2020			2019
Supplemental cash flows:
Cash paid for interest, net of amounts capitalized	$	3,017		$	2,325
Cash paid for reorganization items, net		186			187
Noncash investing and financing activities:
Increase (decrease) in capital expenditures in payables and accrued liabilities		(3,206	)		(2,612	)

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Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Maximum [Member]
Related Party Transaction [Line Items]
Amount of related party transaction	$ 120,000	$ 120,000

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Long-Term Incentive Plans - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares
TSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	$ 0.8
Weighted-average period of unrecognized compensation cost	1 year 8 months 12 days
PSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	$ 0.1
Weighted-average period of unrecognized compensation cost	1 year 6 months
Decrease in share targets | $ / shares	$ 0.25
PSUs [Member] | Market Vesting Date [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock units vesting percentage	50.00%
PSUs [Member] | First Anniversary Market-Vesting Date [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock units vesting percentage	25.00%
PSUs [Member] | Second Anniversary Market-Vesting Date [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock units vesting percentage	25.00%
2017 Non-Employee Directors Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average period of unrecognized compensation cost	2 years
2017 Non-Employee Directors Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	$ 0.1

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Long-Term Debt - Unamortized Deferred Financing Costs - Additional Information (Detail) $ in Millions	Mar. 31, 2020 USD ($)
Credit Facility [Member]
Line Of Credit Facility [Line Items]
Unamortized deferred financing costs	$ 4.4

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Long-Term Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2020

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Amount of Compensation Expense Recognized

The following table summarizes the amount of recognized compensation expense associated with the Legacy Amplify MIP and Legacy Amplify Non-Employee Directors Compensation Plan, which are reflected in the accompanying Unaudited Condensed Statements of Consolidated Operations for the periods presented (in thousands):

	For the Three Months Ended
	March 31,
	2020		2019
Equity classified awards
TSUs	$	131	$	669
PSUs		37		396
Board RSUs		5		113
	$	173	$	1,178

2017 Non-Employee Directors Compensation Plan [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Information Regarding Restricted Stock Unit Awards

The following table summarizes information regarding the Board RSUs granted under the Legacy Amplify Non-Employee Directors Compensation Plan for the period presented:

			Weighted-
			Average Grant
	Number of		Date Fair Value
	Units		per Unit (1)
Board RSUs outstanding at December 31, 2019		16,157	$	5.12
Granted		—	$	—
Forfeited		—	$	—
Vested		—	$	—
Board RSUs outstanding at March 31, 2020		16,157	$	5.12

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

TSUs [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Information Regarding Restricted Stock Unit Awards

The following table summarizes information regarding the TSUs granted under the Legacy Amplify MIP for the period presented:

				Weighted-
				Average Grant
	Number of			Date Fair Value
	Units			per Unit (1)
TSUs outstanding at December 31, 2019		291,370		$	5.18
Granted (2)		18,250		$	6.61
Forfeited		(1,244	)	$	5.12
Vested		(2,411	)	$	5.12
TSUs outstanding at March 31, 2020		305,965		$	5.27

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2) The aggregate grant date fair value of TSUs issued for the three months ended March 31, 2020 was $0.1 million based on a grant date market price of $6.61 per share.

PSUs [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Information Regarding Restricted Stock Unit Awards

The following table summarizes information regarding the PSUs granted under the Legacy Amplify MIP for the period presented:

				Weighted-
				Average Grant
	Number of			Date Fair Value
	Units			per Unit (1)
PSUs outstanding at December 31, 2019		305,893		$	2.15
Granted (2)		18,250		$	3.03
Forfeited		(1,866	)	$	2.11
Vested		—		$	—
PSUs outstanding at March 31, 2020		322,277		$	2.20

(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2) The aggregate grant date fair value of PSUs issued for the three months ended March 31, 2020 was less than $0.1 million based on a calculated fair value price ranging from $2.46 to $3.66 per share.

Schedule of Fair Value Assumptions for PSUs

A Monte Carlo simulation was used in order to determine the fair value of these awards at the grant date.

The assumptions used to estimate the fair value of the PSUs are as follows:

Share price targets	$	12.50		$	15.00		$	17.50
Risk-free interest rate:
Awards Issued on January 1, 2020		1.61	%		1.61	%		1.61	%
Dividend yield		12.1	%		12.1	%		12.1	%
Expected volatility:
Awards Issued on January 1, 2020		60.0	%		60.0	%		60.0	%
Calculated fair value per PSU:
Awards Issued on January 1, 2020	$	3.66		$	2.98		$	2.46

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Revenue - Summary of Revenues Disaggregated (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Total revenues	$ 58,136	$ 65,155
Oil and Natural Gas Sales [Member]
Revenues:
Total revenues	57,787	65,067
Oil [Member]
Revenues:
Total revenues	41,851	40,057
NGLs [Member]
Revenues:
Total revenues	5,122	5,865
Natural Gas [Member]
Revenues:
Total revenues	$ 10,814	$ 19,145

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Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Note 12. Leases

For the quarter ended March 31, 2020, our leases qualify as operating leases and we did not have any existing or new leases qualifying as financing leases or variable leases. We have leases for office space and equipment in our corporate office and operating regions as well as vehicles, compressors and surface rentals related to our business operations. In addition, we have offshore Southern California pipeline right-of-way use agreements. Most of our leases, other than our corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of our leases can be terminated with 30-day prior written notice. The majority of our month-to-month leases are not included as a lease liability in our balance sheet under ASC 842 because continuation of the lease is not reasonably certain. Additionally, the Company elected the short-term practical expedient to exclude leases with a term of twelve months or less.

Our corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, we use our incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, we apply a portfolio approach based on the applicable lease terms and the current economic environment. We use a reasonable market interest rate for our office equipment and vehicle leases.

For the three months ended March 31, 2020 and 2019, we recognized approximately $0.6 million and $0.5 million, respectively, of costs relating to the operating leases in the Unaudited Condensed Statement of Operations.

Supplemental cash flow information related to the Company’s lease liabilities are included in the table below:

	For the Three Months Ended
	March 31,
	2020		2019
	(In thousands)
Non-cash amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	330	$	5,010

The following table presents the Company’s right-of-use assets and lease liabilities for the period presented:

	March 31,		December 31,
	2020		2019
	(In thousands)
Right-of-use asset	$	4,076	$	4,406
Lease liabilities:
Current lease liability		2,202		1,712
Long-term lease liability		1,901		2,720
Total lease liability	$	4,103	$	4,432

The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands):

	Office leases		Leased vehicles and office equipment		Total
Remaining in 2020	$	1,207	$	551	$	1,758
2021		1,426		564		1,990
2022		341		199		540
2023 and thereafter		—		—		—
Total lease payments	$	2,974	$	1,314	$	4,288
Less: interest	$	139	$	46	$	185
Present value of lease liabilities	$	2,835	$	1,268	$	4,103

The weighted average remaining lease terms and discount rate for all of our operating leases for the period presented:

	For the Three Months Ended
	March 31,
	2020			2019
Weighted average remaining lease term (years):
Office leases		1.27			2.32
Vehicles		0.55			0.40
Office equipment		0.07			0.12
Weighted average discount rate:
Office leases		3.5	%		4.1	%
Vehicles		1.0	%		0.5	%
Office equipment		0.2	%		0.2	%

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Long-Term Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt

Note 8. Long-Term Debt

The following table presents our consolidated debt obligations at the dates indicated:

	March 31,		December 31,
	2020		2019
	(In thousands)
Revolving Credit Facility (1)	$	290,000	$	285,000
Long-term debt	$	290,000	$	285,000

(1) The carrying amount of our Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates.

Revolving Credit Facility

Amplify Energy Operating LLC, our wholly owned subsidiary (“OLLC”), is a party to a reserve-based revolving credit facility (the “Revolving Credit Facility”), subject to a borrowing base of $450.0 million as of March 31, 2020, which is guaranteed by us and all of our current subsidiaries. The Revolving Credit Facility matures on November 2, 2023.

Our borrowing base under our Revolving Credit Facility is subject to redetermination on at least a semi-annual basis primarily based on a reserve engineering report with respect to our estimated natural gas, oil and NGL reserves, which takes into account the prevailing natural gas, oil and NGL prices at such time, as adjusted for the impact of our commodity derivative contracts.

As of March 31, 2020, we were in compliance with all the financial (current ratio and total leverage ratio) and other covenants associated with our Revolving Credit Facility.

Weighted-Average Interest Rates

The following table presents the weighted-average interest rates paid, excluding commitment fees, on our consolidated variable-rate debt obligations for the periods presented:

	For the Three Months Ended
	March 31,
	2020	2019
Revolving Credit Facility	3.97%	5.07%

Letters of Credit

At March 31, 2020, we had no letters of credit outstanding.

Unamortized Deferred Financing Costs

Unamortized deferred financing costs associated with our Revolving Credit Facility was $4.4 million at March 31, 2020. At March 31, 2020, the unamortized deferred financing costs are amortized over the remaining life of our Revolving Credit Facility.

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Acquisitions and Divestitures

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisitions and Divestitures

Note 4. Acquisitions and Divestitures

Acquisition and Divestiture Related Expenses

There were no material acquisition or divestitures during the three months ended March 31, 2020 and 2019, respectively.

Business Combination

Acquisitions qualifying as a business combination are accounted for under the acquisition method of accounting, which requires, among other items, that assets acquired and liabilities assumed be recognized on the condensed consolidated balance sheet at their fair values as of the acquisition date. The fair value measurements of the oil and natural gas properties acquired and asset retirement obligations assumed were derived utilizing an income approach and based, in part, on significant inputs not observable in the market. These inputs represent Level 3 measurements in the fair value hierarchy and include, but are not limited to, estimates of reserves, future operating and development costs, estimated future cash flows and appropriate discount rates. These inputs required significant judgments and estimates at the time of the valuation.

Merger

On May 5, 2019, Midstates, Legacy Amplify and Merger Sub entered into the Merger Agreement pursuant to which, Merger Sub merged with and into Legacy Amplify, with Legacy Amplify surviving the Merger as a wholly owned subsidiary of Midstates. At the effective time of the Merger, each share of Legacy Amplify common stock issued and outstanding immediately prior to the effective time (other than excluded shares) were cancelled and converted into the right to receive 0.933 shares of Midstates common stock, par value $0.01 per share. On August 6, 2019, the effective date of the Merger, Midstates changed its name to “Amplify Energy Corp.”

Unaudited Pro Forma Financials

The following unaudited pro forma financial information for the three months ended March 31, 2019, is based on our historical consolidated financial statements adjusted to reflect as if the Merger had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including adjustments to conform the classification of expenses in Midstates statements of operations to our classification for similar expenses and the estimated tax impact of pro forma adjustments. The unaudited pro forma financial information is not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the periods presented, nor is it necessarily indicative of future results.

	For the Three Months Ended March 31, 2019
(Unaudited) (In thousands, except per unit amounts)
Revenues	$	94,996
Net income (loss)		(32,035	)
Earnings per share:
Basic	$	(0.73	)
Diluted	$	(0.73	)

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Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information for the three months ended March 31, 2019, is based on our historical consolidated financial statements adjusted to reflect as if the Merger had occurred on January 1, 2018.

	For the Three Months Ended March 31, 2019
(Unaudited) (In thousands, except per unit amounts)
Revenues	$	94,996
Net income (loss)		(32,035	)
Earnings per share:
Basic	$	(0.73	)
Diluted	$	(0.73	)

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Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Tax

Note 16. Income Taxes

The Company had no income tax benefit/(expense) for the three months ended March 31, 2020 and had less than $0.1 million income tax benefit/(expense) for the three months ended March 31, 2019. The Company’s effective tax rate was 0.0% and 0.2% for the three months ended March 31, 2020 and 2019, respectively. The effective tax rates for the three months ended March 31, 2020 and 2019 are different from the statutory U.S. federal income tax rate primarily due to our recorded valuation allowances.

In March 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, to stabilize the economy during the coronavirus pandemic. The CARES Act temporarily suspends and modifies certain tax laws established by the 2017 tax reform law known as the Tax Cuts and Jobs Act, including, but not limited to, modifications to net operating loss limitations, business interest limitations and alternative minimum tax. The CARES Act did not have a material impact on the Company’s current year tax provision.

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UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (367,199)	$ (31,477)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	15,556	11,166
Impairment expense	455,031	0
(Gain) loss on derivative instruments	(104,096)	32,393
Cash settlements (paid) received on expired derivative instruments	12,522	(1,277)
Bad debt expense	110	101
Amortization and write-off of deferred financing costs	309	308
Accretion of asset retirement obligations	1,513	1,311
Share-based compensation (see Note 11)	(1,112)	1,443
Settlement of asset retirement obligations	0	(162)
Changes in operating assets and liabilities:
Accounts receivable	8,381	4,326
Prepaid expenses and other assets	(349)	(6,856)
Payables and accrued liabilities	(7,399)	(537)
Other	(178)	61
Net cash provided by operating activities	13,089	10,800
Cash flows from investing activities:
Additions to oil and gas properties	(12,416)	(10,370)
Additions to other property and equipment	(304)	(62)
Additions to restricted investments	0	(68)
Net cash used in investing activities	(12,720)	(10,500)
Cash flows from financing activities:
Advances on revolving credit facilities	25,000	0
Payments on revolving credit facilities	(20,000)	(24,000)
Deferred financing costs	0	(101)
Dividends to stockholders	(3,786)	0
Common stock repurchased and retired under the share repurchase program	0	(920)
Costs incurred in conjunction with tender offer	0	(107)
Restricted units returned to plan	(14)	0
Net cash provided by (used in) financing activities	1,200	(25,128)
Net change in cash, cash equivalents and restricted cash	1,569	(24,828)
Cash, cash equivalents and restricted cash, beginning of period	325	50,029
Cash, cash equivalents and restricted cash, end of period	$ 1,894	$ 25,201

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Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Cash and Cash Equivalents Reconciliation (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	$ 1,894	$ 0
Restricted cash	0	325
Total cash, cash equivalents and restricted cash	$ 1,894	$ 325	$ 25,201	$ 50,029

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	AMPY
Entity Registrant Name	Amplify Energy Corp.
Entity Central Index Key	0001533924
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Tax Identification Number	82-1326219
Entity File Number	001-35512
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	500 Dallas Street
Entity Address, Address Line Two	Suite 1700
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	713
Local Phone Number	490-8900
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock
Entity Common Stock, Shares Outstanding		37,566,430

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Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Right-of-use asset	$ 4,076	$ 4,406
Current lease liability	2,202	1,712
Long-term lease liability	1,901	2,720
Total lease liability	$ 4,103	$ 4,432

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Revenue

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue

Note 3. Revenue

Revenue from contracts with customers

Oil and natural gas revenues are recorded using the sales method. Under this method, revenues are recognized based on actual volumes of oil and natural gas sold to purchasers, regardless of whether the sales are proportionate to our ownership in the property. An asset or a liability is recognized to the extent there is an imbalance in excess of the proportionate share of the remaining recoverable reserves on the underlying properties. No significant imbalances existed at March 31, 2020.

Disaggregation of Revenue

We have identified three material revenue streams in our business: oil, natural gas and NGLs. The following table present our revenues disaggregated by revenue stream.

	For the Three Months Ended
	March 31,
	2020		2019
	(in thousands)
Revenues
Oil	$	41,851	$	40,057
NGLs		5,122		5,865
Natural gas		10,814		19,145
Oil and natural gas sales	$	57,787	$	65,067

Contract Balances

Under our sales contracts, we invoice customers once our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities. Accounts receivable attributable to our revenue contracts with customers was $16.2 million at March 31, 2020 and $31.9 million at December 31, 2019.

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Long-Term Incentive Plans - Summary of Information Regarding Restricted Stock Awards (Detail) - 2017 Non-Employee Directors Compensation Plan [Member] - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding, Number of Units, Beginning Balance | shares	16,157
Granted, Number of Units | shares	0
Forfeited, Number of Units | shares	0
Vested, Number of Units | shares	0
Outstanding, Number of Units, Ending Balance | shares	16,157
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares	$ 5.12
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares	0
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares	0
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares	0
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares	$ 5.12

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Risk Management and Derivative Instruments - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2020	Mar. 31, 2020
Derivative Instruments Gain Loss [Line Items]
Conditional rights of set-off under ISDA Master Agreement reduce the maximum amount of loss due to credit risk		$ 99,100,000
Maximum credit exposure		$ 5,700,000
Crude Oil | Subsequent Event [Member]
Derivative Instruments Gain Loss [Line Items]
Cash proceeds form crude oil hedges	$ 18,000,000

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Risk Management and Derivative Instruments - Unrealized and Realized Gains and Losses Related to Derivative Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments Gain Loss [Line Items]
(Gain) loss on commodity derivatives	$ 107,713	$ (32,487)
Interest expense, net	(7,647)	(4,089)
Commodity derivatives [Member]
Derivative Instruments Gain Loss [Line Items]
(Gain) loss on commodity derivatives	(107,713)	32,487
Interest rate derivatives [Member]
Derivative Instruments Gain Loss [Line Items]
Interest expense, net	$ 3,616	$ (94)